This is a class action suit against an out of state group health insurance company who decided to embark on the pattern and practice of raising its insured’s premiums when they were sick and based on other health related factors. The company did this in the hopes of making it financially impossible for the sick people who had the health plan to afford to keep the plan. Most of the people affected by this scam were near the age of 65 and Medicare eligibility. The insurance company defended the suit by saying that Florida law which protected the insureds did not apply to it because it was an out-of-state group.
The lawyers at Shaw Lewenz were able to strip the company of its out of state group exemption and have Florida law apply to its pattern and practice. After obtaining this judgment from the court, the parties settled with the company and agreed to reimburse all persons for the extra premiums that they paid, to provide people who could not afford the premium increases with an insurance policy with reasonable premiums and to reimburse insureds’ out-of-pocket losses.