3 units of Aetna pay $850,000 fine to NY

Three Aetna Inc. companies have collectively paid an $850,000 fine to New York State insurance regulators to settle charges of incomplete disclosures on explanation of benefit forms and violations of the state's prompt-payment requirements.

In June, the New York State Insurance Department said a market-conduct examination of the subsidiaries -- Aetna Health Inc., Aetna Health Insurance Company of New York and Aetna Life Insurance Co. -- showed violations of state insurance laws and regulations, including utilization-review programs but the department hadn't yet determined a fine (BestWire, June 22, 2010).

The exam covered a review of how the companies fulfilled their contractual obligations to policyholders and claimants and covered the period of March 1, 2001, through Dec. 31, 2005.