Humana fined over sales agents

Humana Inc., the second-largest provider of health plans to the elderly, was fined $500,000 by Illinois regulators for using unlicensed agents to sell products sponsored by the U.S. Medicare program.

The Louisville, Ky.-based company's agents misrepresented the insurance, and consumers said they were enrolled in broad health plans when they wanted only drug coverage, according to documents posted this week on the Illinois Insurance Division's Web site. Humana agreed to pay the fine and file a compliance plan.

The Jan. 8 order was the second state fine against Humana over marketing of the profitable Medicare Advantage health plans to the elderly and disabled. In August, Oklahoma regulators hit Humana with a $500,000 penalty for using unlicensed agents to sell coverage. States are seeking increased authority over Medicare marketing, now largely controlled by U.S. officials.

"The division will not tolerate any marketing or sales practices that put Illinois citizens in unaffordable or unnecessary programs, especially with important and complicated programs" sponsored by Medicare, Insurance Division Director Michael McRaith said in the statement.

Humana agents without state licenses sold Medicare coverage in 2005 and 2006, Illinois officials said. The company failed to notify the state as required after two agents were fired and seven reprimanded for improper sales techniques, the officials said.

Humana spokesman Mark Mathis denied any consumers were enrolled in plans they didn't want.

"In all cases, Humana provided coverage to those who sought to enroll, and enrolled consumers in the plan for which they had applied," Mathis said in an e-mail statement.