The Policyholder Advocate
Summer 2009 issue
Lawsuit Claims Nationwide Insurance Misled Consumers
KUOW April 17, 2009
ized to sell any type of health insurance in Washington state. Even when the company was certified to do business here, Hamburger says it wasn't up front about its product. Hamburger: "Until July 27, 2007, limited medical benefit plans like this one were illegal when they were sold as stand alone policies; you couldn't sell unless they were sold as a supplement to comprehensive health care."
Kreidler says these policies will have limited coverage, and often payments are set at a fixed amount. Kreidler: "It won't be the comprehensive health insurance policy. It doesn't mean it's not valuable, it's just that it's not going to be there the same way the comprehensive policy has been." If you're still unsure about the policy or the insurance company, you can call the Commissioner's office to verify the information. It might be too late for Ruth Bjorklund, but she wants other people to learn from what happened to her. Bjorklund: "It was an incredibly overwhelming experience and I hope that people are careful with these discount plans." Bjorklund continues to make payments on her medical bills and expenses incurred from two years ago. She says she still has a long way to go before they're paid off.
Two Seattle attorneys have filed a class action lawsuit against Nationwide Life Insurance Company. The case alleges the Ohio–based company sold health plans with inadequate coverage to The lawsuit was filed on behalf of more than 400 Washington Washington consumers. clients who bought insurance Two years ago, Ruth Bjork- from Nationwide. A company lund suffered a seizure. She spokesperson says they can't was airlifted from her home comment while the case is beon Bainbridge Island to Har- ing reviewed. State law allows borview Hospital. Doctors insurers to sell plans with limfound a brain tumor and rec- ited medical benefits. But comommended immediate sur- panies are also required to fully gery. At the time, Bjorklund disclose the policy's limitations thought her health plan — for example, how much it through Nationwide Insur- would pay for hospital care, or ance would cover the bills. whether their primary doctor is Bjorklund: "The essence of covered by the plan. State Inthe policy was, we're going surance Commissioner Mike to pay for this and what's Kreidler says it's easy to be over and above that, you get swayed by the cheapest option available. But consumers need this great discount." to do some research before But Bjorklund found out buying insurance, and look out there were severe limits on for these words in their browhat her health plan would chures. cover. The procedure and hospital care left her with Kreidler: "If they use the term more than $135,000 in debt. like 'fixed payments,' or Bjorklund is part of the 'discounts,' make sure that you class action lawsuit against understand that you're looking Nationwide Insurance. Ellie at something that's not going to Hamburger is the lawyer for be the real insurance that the plaintiffs. She says when you're used to." Nationwide sold coverage to Bjorklund, it wasn't author-
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