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Third Party Administrator Pays for Wrongful Cancellation of Coverage

April 23, 2020

Clown with sad expression looking forward I recently represented a New Mexico retiree whose health insurance coverage was cancelled by an out-of-state administrator. The client had paid for all his premiums, but the company increased the premiums without notice. The client spent months trying to resolve the issue on his own, but the company wouldn't take responsibility.

Needless to say, I thought the company's abusive tactics violated New Mexico law. The client and I filed a lawsuit under the Unfair Practices Act and the company made an offer of settlement before answering the complaint.

If you have been harmed by wrongful cancellations of coverage, it may be time to hold the company accountable. An insurance bad faith attorney can evaluate your situation and help you determine whether a lawsuit is appropriate.