Updated 07/13/2012 03:05 PM
AXA reaches settlement with Attorney General's office
SYRACUSE, N.Y. -- AXA Equitable and the State Attorney General's office have reached a settlement for what's being called unlawful changes in insurance policies.
Attorney General Eric Schneiderman's Office said the Life Insurance Company made an undisclosed change to its medical claim reimbursement policy resulting in lower reimbursements for many members. AXA Equitable has already changed its policy to honor the terms of its members' health insurance plans.
As part of the settlement, AXA will pay restitution to its members who were adversely impacted. Those payouts could reach as high as a combined $850,000.
A company Spokesperson released the following statement: “AXA Equitable is committed to doing what is right for our customers. Our intention always was to pay claims at the reasonable and customary rate. As of June 1st, we moved to the Fair Health protocol for future claims from our small, closed-block of major medical insurance clients. We are looking back at all claims paid from September 2011 through May 2012 and, if any of our customers incurred shortfalls, we will pay those shortfalls at 100 percent."
AXA says it has fully cooperated with the Attorney General’s office and the Department of Financial Services.