Wash. OIC Orders MEGA to Halt Sale of Some Health Insurance Policies

Washington’s Office of the Insurance Commissioner (OIC) has issued a cease and desist order against Mega Life and Health Insurance Company (MEGA) of Oklahoma for selling health insurance that reportedly violates Washington law.

Under state law, group polices must include certain benefits such as emergency services, mammograms, maternity care stays, newborn coverage, and reconstructive breast surgery.

In addition, out-of-state insurers selling group policies must file certificates which detail their policyholders’ insurance benefits with the OIC.

Most of MEGA’s policies reportedly do not provide benefits required by law and some of their certificates of coverage have not been filed with OIC. Until they provide the required benefits and file their certificates of coverage, MEGA may not issue policies. In addition, the company must notify their agents of the cease and desist order.

MEGA has approximately 37,000 policyholders in Washington.