Companion Life Insurance faces a $487,000 fine after claiming their insurance plans were compliant with the Affordable Care Act.
Delaware Insurance Commissioner Karen Weldin Stewart said the fine is the result of numerous complaints from Delaware consumers. Companion sold 242 customers limited benefit and short term health insurance plans that were not complian with the ACA, even though Companion represented them as being compliant.
“Consumers have to be careful when choosing a health insurance plan online,” Stewart said in a statement. “The different plans can be confusing and some do not comply with ACA requirements.” She recommended connecting with an ACA-approved health navigator on the state’s health care website choosehealthde.com.
Companion aggreed to a Stipulation and Consent Order in early November and admitted to multiple code violations.
Stewart said 145 policy holders decided to terminate their plans with Companion, and the company refunded more than $18,000 in premium payments.