Indiana-based insurer is pulling out of West Virginia, saying regulatory action taken against it by the state forced the decision.
Medical Savings Insurance of Indianapolis notified customers this month that it will not renew their policies, the Charleston Gazette reported in Tuesday’s editions. The company sold about 629 health savings accounts covering 1,263 West Virginians.
Medical Savings said in the notice that its decision was “a result of a complaint filed with the insurance commissioner” involving “a minor lawsuit clause” in the policies it writes. The state’s action “forced this company to exit the state,” the notice said.
Medical Savings officials did not return telephone calls from the newspaper.
Insurance Commission spokeswoman Lynette Maselli said regulatory action was taken against Medical Savings for failing to comply with state and federal laws. Maselli said the complaint is still pending and she could not disclose details.
“The action taken against Medical Savings Insurance Co. was, in fact, in the best interest of consumers,” she told the newspaper.
Maselli said the Insurance Commission “made substantial efforts to work with Medical Savings Insurance Co. regarding specific issues where it was out of compliance with the federal and state constitution as well as the state code.”
Health savings accounts allow people to save money tax free for routine medical bills. Holders of such accounts also must have a high-deductible health insurance policy.
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