News Headlines Article

Health insurer HealthMarkets sued by L.A. city attorney over ‘junk insurance’
Los Angeles Times

A national health insurer and its majority owners, Wall Street powerhouses Goldman Sachs Group Inc. and Blackstone Group, were accused in a lawsuit Wednesday of defrauding their California customers with “junk insurance” that provided little or no protection.

The suit filed by the Los Angeles city attorney’s office alleges that HealthMarkets Inc. and its affiliates trained sales agents to deceive customers — mostly self-employed individuals and small businesses — into buying confusing policies riddled with exclusions and limitations.