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Colorado Fines Cigna $126,000 For Violations

MANAGED CARE September 1998. © MediMedia USA
State Initiatives

Colorado Fines Cigna $126,000 For Violations

MANAGED CARE September 1998. ©1998 Stezzi Communications

The Colorado Division of Insurance imposed its largest-ever fine, $126,000, on Cigna Health Care and Connecticut General Life Insurance, a Cigna indemnity unit, for violating state law by failing to actively market a low-cost standard health plan to small businesses.

The state also cited the company for inadequately responding to complaints, issuing incorrect policy forms, making underwriting errors and incorrectly issuing credentials to insurance agents.

State law requires insurers to offer and market basic health plans with standardized benefits and guaranteed coverage to small companies. An insurer's failure to market the basic plan could drive a high number of high-cost cases to other insurers, raising their costs, the state says.

Cigna said it has solved many of the problems raised by the state.

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