California Managed Care Office Shuts Down Labor Health Insurance Scheme – Kaiser Offered All Alleged Victims New Policies

The same individuals had consumer complaints in six other states and the Managed Care office states they were able to catch the scheme before any policy holders were left holding the bag. Kaiser stated that “payments were made late” at best. Who can and will you trust with health insurance today? What is strange is that the insurance plan owners stated they never had more than 50 members, while Kaiser stated there were more than 500 individuals affected. BD

California regulators said they had shut down a labor union health insurance scheme that put hundreds of consumers at risk of losing coverage.
The Department of Managed Health Care said Tuesday that it had obtained an order from an administrative judge barring Raymond and Jean Palombo of Riverside from selling health maintenance organization and preferred provider organization policies in California.

The department contended that the Palombos conspired with a union to collect premiums from members but then failed to pay the premiums in full to Kaiser Permanente, the contracted health plan. That, the department said, put nearly 500 people in jeopardy of losing their health coverage. Acting on a consumer complaint from 2007, the department said it discovered that the Palombos had been barred from insurance sales in six states, including Texas, Oklahoma and Florida.

Kaiser spokesman Jim Anderson said that "many payments were late at best."

California regulators shut down alleged health insurance scheme - Los Angeles Times