Nationwide sued over insufficient health coverage claims

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A lawsuit has been filed in U.S. District Court in Seattle on behalf of 400 plaintiffs alleging that Nationwide Insurance “unfairly and deceptively” sold them health insurance plans.

medical-caseThe class-action lawsuit, on behalf of Washington state consumers, claims the plans left them without sufficient health coverage and were sold without authorization from the state’s insurance department, the Seattle Times reported.

It also claims the plans, dubbed “fixed indemnity plans,” did not comply with laws requiring certain minimum benefits.

One of the plaintiffs, Ruth Bjorklund, said following surgery for a brain tumor, she noticed that Nationwide was only paying a minimal amount of her expenses, according to the report. Bjorklund said she is more than $135,000 in debt and got “duped” into thinking the plan would cover more medical expenses.

A spokesman for Nationwide did not comment on the case.

Nationwide also recently reached a $6 million settlement in another suit, facing accusations it overcharged customers of certain life insurance policies between 1990 and 2006, according to published reports.

The suit was filed by a Rhode Island man in 2005 who claimed Nationwide Mutual Insurance Co. charged more than the guaranteed maximum premium on some policies. As many as 200,000 people were affected by the charges between 1990 and 2006, according to reports.

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