"Supplemental insurance policyholders who have received benefits under an American Public Life Policy or an American Family Life Policy within the last 5 years may be entitled to additional compensation."
A law firm is investigating the possibility that many people have been denied full payment from their insurance companies for policies bought specifically for cancer patients. It seems that supplemental insurance policyholders who have received benefits under an American Public Life Policy or an American Family Life Policy within the last 5 years may be entitled to additional compensation. Many supplemental insurance policyholders were guaranteed, under their policies, 110% of all medical bills.
However, it has come to light that American Public Life and American Family Life have changed their payout guidelines due to a higher number of claims than expected. The insurance providers have allegedly changed their payout guidelines mid-contract without prior consent of the policy holders.
This change was made with respect to both existing and new policies; it was also made on policies which were already providing payments. People who were getting paid 110% of the medical bills incurred ("actual charges"), some of them for years, suddenly had their payments cut to 110% of bills after they have been discounted pursuant to PPO plans.
Serving as an example, under the old policy, they would have to pay $11,000 on a $10,000 chemotherapy bill. Under the new policy, they might pay $2200 on the same chemotherapy bill after it is discounted pursuant to a PPO contract.
American Public Life and American Family Life's actions are allegedly a breach of the insurance contracts they sold. Consumers chose to pay higher premiums so they could get supplemental insurance commensurate with the costs of cancer treatment, not with the costs of cancer treatment after PPO discounting.
