Attorney General Andrea Joy Campbell has announced a significant court order from Suffolk Superior Court against three UnitedHealth insurance companies, HealthMarkets, Inc., and its subsidiaries. The ruling mandates these entities to pay over $50 million in restitution to Massachusetts consumers and more than $115 million in civil penalties to the Commonwealth for misleading practices. These companies are owned by UnitedHealth Group.
The court's decision marks a notable imposition of civil penalties under the Massachusetts Consumer Protection Act. The defendants were found to have targeted vulnerable consumers with deceptive sales tactics. The judgment follows a complaint filed by the Attorney General's Office in 2020, which accused the companies of violating consumer protection laws and a prior consent judgment.
AG Campbell stated, “For years, the defendants preyed on financially vulnerable individuals, deceiving them into buying products they didn’t need or couldn’t afford. This order holds the companies accountable and will provide meaningful restitution to consumers across the Commonwealth.”
In April 2022, the court held all three defendants liable for violating both the consent judgment and state consumer protection laws. The ruling highlighted that sales agents misrepresented themselves as objective while falsely claiming to represent all insurance carriers.
The December 31, 2024 ruling detailed findings of widespread misrepresentations by bundling major medical and supplemental insurance policies. As a result, over $50 million is to be refunded to affected consumers alongside more than $115 million in civil penalties for various violations.
Further proceedings will address costs of investigation, attorney’s fees, and additional injunctive relief against these companies.
This case was managed by Assistant Attorneys General Emiliano Mazlen and Michael Wong, Deputy Division Chief Ethan Marks, Division Chief Sandra Wolitzky of the AG’s Health Care Division, State Trial Counsel James Sweeney, with support from Paralegals Gaëlle Bouaziz and Sandra Charalel and Mediation Unit Director Lisa Fenichel of the AG’s Health Care Division. Anthony Crespi, Edward Cherubin, and Division Chief Marlee Greer from the AG’s Civil Investigations Division also contributed.