Judge Quoted on TPA Responsibility of Contracted Sales Companies

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Judge Quoted on TPA Responsibility of Contracted Sales Companies

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The Capitol Forum

Partner Jonathan Judge was quoted on third-party administrator (TPA) Health Insurance Innovations (HII) and their relationship with third-party call centers currently under a multistate examination for their insurance policy sales practices.

Though HII disavows responsibilities for the call centers’ practices, Jonathan contends that state regulators may be able to hold HII liable.

“You could even argue that [the call centers are] essentially an arm of the company; that they’re not independent. If so, TPAs would do well to be careful what their contracted call centers are saying about their policies.”

If HII is found liable, the penalties, Jonathan said, will vary by state. He added that there is a frequent correlation between the number of consumers affected by the wrongdoing and the size of the penalties resulting from multistate examinations.

Read the full article here.