New York State Attorney General Andrew Cuomo announced Monday that Aetna, the third-largest health-insurance company in the United States, agreed to reimburse more than 73,000 students at over 200 colleges nationwide for underpaying student claims.
The company, which serves as the health care provider for the Penn Student Insurance Plan, underpaid more than $5.1 million in student health-insurance claims nationwide between 1998 and April 2008.
This occurred because Chickering, Aetna's subsidiary that handles student health insurance, used outdated reimbursement rate information for students and doctors across the nation.
Aetna According to Aetna, 665 Penn students, including current students and some students who have already graduated, will receive some form of reimbursement.
"Most of the affected students will receive reimbursements under $200," University spokeswoman Lori Doyle wrote in an e-mail.
According to Aetna spokeswoman Cynthia Michener, the average reimbursement will be about $25.
They will receive individual letters explaining details on their compensation from Aetna.
The need for this compensation comes from Aetna's claims involving out-of-network care, or the use of professionals outside of a health plan's network who do not have contracted rates with the health care provider.
"Students were particularly vulnerable to being cheated because they placed their trust in health care plans sponsored by their colleges," Cuomo said in a press release. "Aetna Student Health broke that trust."
Despite the magnitude of the reimbursements, repaying students will not have any significant effects on Aetna.
Michener explained in an e-mail that the affected claims represent only 3 percent of the overall Chickering claim volume.
"This issue did not affect Aetna's primary claim platform," Michener wrote.
In response to the agreement, Aetna will make various changes, including enhanced staff training and regular updates of Student Health's claims-processing system.
Despite this nationwide insurance mishap, no imminent changes will be made to PSIP.
"We are not looking at any change of the company at this point," Doyle said.
According to Michener, Aetna plans to restore its relationship with students in its health care programs.
"Our new president of Aetna Student Health and her team will work diligently to restore the trust and confidence of you and your families, as well as the University, which has chosen Aetna to provide a vital service," wrote Michener.
Students who have questions or think they may have been affected should contact Aetna at 866-805-7643, Doyle said.
