| United Healthcare of Ohio and Anthem Blue Cross and Blue Shield have signed consent orders with the Ohio Department of Insurance to resolve allegations of improper compensation to agents, Insurance Director Ann Womer Benjamin announced Wednesday. The Department alleged United Healthcare and Anthem paid compensation to certain appointed agents working under contract with public entities to evaluate multiple health insurance coverage options and to secure the most suitable coverage for the public entities' employees. "The Department is targeting illegal practices in the sale of insurance," Director Womer Benjamin said. "Our investigation is focusing on specific instances where clients and the public are being misinformed and in some cases deceived. The Department's investigation is ongoing and more announcements will be forthcoming." The settlement agreements are a component of a comprehensive Department investigation - which began in late 2004 - into allegations of bid-rigging and inappropriate compensation and misrepresentation by Ohio-licensed insurers and agents. United Healthcare and Anthem agreed to pay a penalty to the Department in the amount of $125,000 and $25,000, respectively. However, the consent orders state that the insurers neither admit nor deny the Department's allegations and they have entered into the agreement to resolve all outstanding disputes. The companies have agreed to establish policies that ensure proper compliance with Ohio regulations and laws related to agent compensation.
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