State regulators say an Iowa insurance agency accused of a deceptive practice has agreed to repay more than $1.3 million to local governments.
The Des Moines Register reports that Two Rivers Insurance Co., which is based in Burlington, was accused in 2014 of inflating the amount it spent on premiums for health coverage purchased from Wellmark Blue Cross & Blue Shield.
The agency had been acting as an independent agent selling insurance for Wellmark Blue Cross and Blue Shield and other companies.
Documents released Monday say Wellmark complained to state regulators that the brokerage had improperly included up to 7 percent in its own fees in “premium” costs that it billed to local governments for insurance for 10,500 public employees.
Two Rivers President Todd Ackerman says the brokerage still denies any wrongdoing but is settling the dispute to avoid “an extremely costly and burdensome legal process.”
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