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Citizens for Economic Opportunity drops Aetna lawsuit

Managed Care Weekly Advisor, August 15, 2007

New state legislation requiring better disclosure of health plan limitations has forced Citizens for Economic Opportunity to drop its lawsuit against Aetna. The labor-community coalition filed the suit last October, citing health plans with limited benefits that left consumers paying thousands of dollars in medical fees.

According toThe Hartford Courant, limited-benefit plans draw consumers searching for low premiums, but cap their annual reimbursement anywhere from $1,000 to $10,000. Other medical services have ceilings, too, and Aetna says the plans are for hourly, part-time, and seasonal employees who would otherwise go uninsured.

The new plan limitation warnings must tell employees the limits of the plan and that policies are not intended to cover serious or long-term illness.

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