KHN Morning Briefing

Summaries of health policy coverage from major news organizations

Officials In 25 States Probe American Trade Association Insurance

The Fiscal Times: "Authorities in over 25 states are investigating [the] insurance company, American Trade Association (ATA), and have uncovered what they believe is a deep well of scams that ensnared an estimated 12,000 people who paid about $14 million in premiums. ATA and its lawyer did not respond to repeated requests from The Fiscal Times for comment. Authorities across the country are now trying to shut down ATA, which attracted clients by advertising on Internet sites and sending blast faxes to workplaces." Experts say the number of people who have been prey to such operations is not surprising. "A searing recession left nearly 10 percent of the American workforce unemployed ... at a time when health care costs continue to soar, creating fertile ground for swindlers. ... A coalition survey of state insurance regulators last fall reported 38 percent of state insurance bureaus surveyed found health insurance fraud was 'much higher' than in the previous year, while another 19 percent said it was 'slightly higher'" (Dougherty, 5/4). This is part of the KHN Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.