New York State
Insurance Department


ISSUED: 12/6/99

FOR IMMEDIATE RELEASE

LEVIN REQUIRES CORRECTIVE MEASURES BY
MVP HEALTH PLAN FOR VIOLATIONS OF DEPARTMENT POLICY

            Superintendent Neil D. Levin today announced that the he has directed MVP Health Plan to take action to correct inaccurate policyholder information regarding its January 1st rates for members. The Department learned that MVP Health Plan sent a letter to its CompCare members informing them that their rates were increasing effective January 1, 2000.

            "This is a clear violation of Department policy and will not be tolerated," said Levin. "We will continue to protect consumers by taking quick action against insurers that fail to comply with our insurance laws and regulations."

            MVP Health Plan applied for a rate increase for its CompCare members to be effective January 1, 2000, and the Department held public hearings in November regarding this proposal. However, Department policy prohibits insurers from implementing requested rate adjustments before the Department has made a final determination on the application. This policy eliminates confusion for consumers over what the rate increase will be as of January 1st.

            MVP Health Plan, headquartered in Schenectady, NY, has taken immediate steps to correct the error and to provide its members with accurate billing information and correspondence that fully complies with state laws and regulations. Senator William J. Larkin (R-C, Cornwall-on-Hudson), upon receiving information from MVP policyholders in his area, contacted the Insurance Department about MVP’s noncompliance.

            The corrective measures required by the Department include:

            MVP has also agreed to take further corrective action directed by the Department to fully resolve this situation if necessary. The Department will monitor MVP’s progress on implementing these corrective measures.
      


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