HealthMarkets cuts 130 jobs in North Richland Hills Posted Thursday, Feb. 18, 2010 Comments (0) Recommend (13) Print Share Share By DIANNA HUNT
dhunt@star-telegram.com
HealthMarkets — the beleaguered North Richland Hills insurance company that has been hit with deceptive trade allegations and fines for noncompliance in recent years -- announced today that it is laying off about 130 people.
The job reductions will leave about 960 employees at the North Richland Hills facility at 9151 Boulevard 26, the company said in a written statement. Employees who lost their jobs were offered severance packages.
"As an industry, the effect of the challenging economy has led to a shrinking of membership numbers," according to the statement. "Many of the largest health insurance companies in the country have experienced reductions in enrollment numbers which has forced them to make reductions in their workforces. Regrettably, HealthMarkets is experiencing similar membership shrinkage."
Last year, HealthMarkets, formerly known as UICI, and subsidiaries Mega Life and Health Insurance of Oklahoma and MidWest National Life Insurance of Tennessee, agreed to pay $17 million to settle deceptive marketing allegations raised in Massachusetts. The company and Mega Life also agreed to pay $1 million in fines and $4.6 million in restitution in Maine to settle complaints of overcharging customers.
In 2008, the company paid a $20 million penalty as part of a multistate settlement that arose from a 2005 review of the companies’ operations.
Most recently, Mega Life was fined $500,000 by Texas officials for failing to comply with state regulations for prompt payment of claims. Mid-West National was fined $100,000 for similar violations.
In 2006, an investment group led by the Blackstone Group and Goldman Sachs Capital Partners closed on its $1.6 billion buyout of UICI. The company later changed its name to HealthMarkets.
