Low-cost insurer leaves bills and a bitter taste - The Boston Globe: Reading this about MEGA, I can't shake the refrain from a '60s folk song, now running through my head: "When will they ever learn, when will they ever learn?" An excerpt--
"They are insured by Mid-West National Life Insurance Co. of Tennessee , whose low-cost health insurance plans have generated similar complaints from other consumers. Mid-West National Life and a sister corporation, MEGA Life and Health Insurance Co. , are subsidiaries of HealthMarkets , a for-profit national company based in Texas.
The companies provide health insurance to only about 30,000 Massachusetts residents, but that number might grow. Some state officials say MEGA Life and other insurers that offer low-cost policies to small businesses could play a role in the state's attempt to expand healthcare coverage to all residents. The reform law requires all Massachusetts residents to purchase insurance.
Last week, MEGA Life was sued by Attorney General Thomas F. Reilly's office, which alleges the company used deceptive marketing, failed to cover mandated benefits, and improperly denied patient claims. Also, MEGA Life and Mid-West are the subject of a multi state examination by insurance commissioners, as well as the focus of a separate examination by the Massachusetts Division of Insurance ."
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