Violation Tracker Individual Record

Company: 
Humana Insurance Company and Humana Health Plan of Texas, Inc.
Current Parent Company: 
Humana
Penalty: 
$639,607
Year: 
2020
Date: 
May 1, 2020
Offense Group: 
consumer-protection-related offenses
Primary Offense: 
insurance violation
Violation Description: 

In 2015, Humana initiated a strategy to simplify the number of individual health products it offered in Texas and, eventually, withdrew from the Texas individual health market in 2018. Terminations that occurred in 2016 as part of that strategy violated Texas insurance laws. Additionally, the Texas Department of Insurance discovered instances in which Humana used unapproved association plan forms and failed to notify associations of changes to policy language upon renewal. Lastly, between 2014 and 2017, Humana violated regulations by rating small employers as if they were large employers. Humana agreed to pay a $500,000 administrative penalty and $139,607.33 in restitution.

Level of Government: 
state
Action Type: 
agency action
Agency: 
Texas Department of Insurance
Civil or Criminal Case: 
civil
Facility State: 
Texas
HQ Country of Parent: 
USA
HQ State of Parent: 
Kentucky
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
healthcare services
Specific Industry of Parent: 
insurance; managed care
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.