Excerpt from article ....
" ... Praeger was speaking as more than Timber's relative. It so happens she's also Kansas' lead insurance regulator. And she knows Bankers Life all too well.
Hundreds of policyholders had complained the company beat them down with bureaucracy -- and counted on them to be too sick to fight back. In 2008, Kansas and 39 other states had found a "pattern of consumer harm" at Bankers Life that included unjustified delays and bad recordkeeping.
"They were able to demonstrate a pattern that appeared to be at least designed to frustrate people," Praeger says.
Bankers Life and a sister company eventually admitted no wrongdoing -- but paid $32 million for fines, restitution and system improvements. Yet, complaints continued to grow.
A CBS News analysis found that, in 2010, Bankers Life's market share had shrunk to less than six percent, but the company drew one-third of the complaints reported by state insurance commissioners.
Bankers Life wouldn't talk with CBS News, citing privacy concerns. In a statement, it said it paid $1.3 billion dollars to 1.3 million customers, including long-term care policyholders, and is "committed to the highest standards for ethics, fairness and accountability."
Once Praeger got involved, Timber's claims from the past year finally got paid. But his struggle wasn't over. Bankers Life recently questioned Timber over the phone and concluded he's too healthy to continue getting home health care -- a finding his family disputes - but says they're too worn down to fight.
Full Article:
Some long-term healthcare policies not paying up - CBS News
" ... Praeger was speaking as more than Timber's relative. It so happens she's also Kansas' lead insurance regulator. And she knows Bankers Life all too well.
Hundreds of policyholders had complained the company beat them down with bureaucracy -- and counted on them to be too sick to fight back. In 2008, Kansas and 39 other states had found a "pattern of consumer harm" at Bankers Life that included unjustified delays and bad recordkeeping.
"They were able to demonstrate a pattern that appeared to be at least designed to frustrate people," Praeger says.
Bankers Life and a sister company eventually admitted no wrongdoing -- but paid $32 million for fines, restitution and system improvements. Yet, complaints continued to grow.
A CBS News analysis found that, in 2010, Bankers Life's market share had shrunk to less than six percent, but the company drew one-third of the complaints reported by state insurance commissioners.
Bankers Life wouldn't talk with CBS News, citing privacy concerns. In a statement, it said it paid $1.3 billion dollars to 1.3 million customers, including long-term care policyholders, and is "committed to the highest standards for ethics, fairness and accountability."
Once Praeger got involved, Timber's claims from the past year finally got paid. But his struggle wasn't over. Bankers Life recently questioned Timber over the phone and concluded he's too healthy to continue getting home health care -- a finding his family disputes - but says they're too worn down to fight.
Full Article:
Some long-term healthcare policies not paying up - CBS News
