National Association for the Self Employed (NASE)
My experience with NASE and Mega Life Health Insurance
June 15, 2005
By Rick O'Kelley
In May 1993 I took out a family Health Care Policy through NASE which had a Premium Refund Rider and a Disability Policy. The Policy initially covered myself and our two minor children and went into force on May 10, 1993. The initial premium was $191. In March 1995 my wife was added to the policy. Over the years my two children became adults and dropped off the policy and I dropped the disability in 2000 when NASE sold that to another business yet by November 10, 2004 our premium for my 48 year old wife and myself, age 52, went from $897 a month to $1009.00. In the eleven years and six months I don't recall ever meeting our deductible, and most of medical service we had done, the policy wouldn't cover so to my knowledge NASE or Mega Life who was the insurance underwriter for NASE never paid out a single dime yet our premiums climbed through the roof.
On January 10, 2005 I terminated this policy and applied for my premium refund as per the refund rider. At the time of termination, the person we spoke with was very vague about the premium refund. She wasn't very certain as to when or how this would occur but we would receive some form in about six weeks then should receive our refund two to four weeks later.
On February 15, I sent a letter to Mega Life asking about this promised form and when we could expect to receive it. Receiving no response to that letter, on March 14, I sent another letter, again asking about the refund process. On March 21, 2005 I finally received a claim form from Mega Life informing me they were processing my claim for $21,476.72 with no explanation as to how they came up with this figure. Based upon my figures this amount was almost $6000 less than the refund I should receive. I had paid $66,226.40 and based upon the terms of the rider I should receive 41.66% for a total of $27,589.92 so I submitting another letter on March 22 to Mega Life pointing out this difference and asking them to provide me with the amount of premiums they show I had paid and the percentage they used to calculate my refund.
The first week in April, almost three months after I terminated my policy with NASE (Mega Life), I received a refund check in the amount of $21,476.72.
On April 15, 2005 receiving no reply to my March 22 letter, I sent another letter to Mega Life again asking for an accounting of the amount I had paid in and the percentage used to calculate my refund. I waited two months for Mega Life to provide the information I requested. Having been ignored today, June 15, 2005, I sent a final letter informing Mega Life that I require the information and should they fail to provide it I will seek a legal remedy. I am sending a copy of this letter to NASE, we will see what occurs.
BTW, I replaced my $1009 per month Mega Life Health policy with a $600 deductible with a $280 per month Medical Savings Account with a $2600 deductible with a well known insurance provider. Would I recommend NASE or Mega Life to my friends or business associates? Hell no!
Below is my payment schedule for my NASE Policy. Notice they never missed an opportunity to raise my rates.
Payments Date Amount Date Amount Date Amount 5/10/1993 273.00 6/10/1997 408.00 7/10/2001 549.00 6/10/1993 191.00 7/10/1997 408.00 8/10/2001 549.00 7/10/1993 191.00 8/10/1997 408.00 9/10/2001 549.00 8/10/1993 191.00 9/10/1997 408.00 10/10/2001 549.00 9/10/1993 191.00 10/10/1997 408.00 11/10/2001 488.00 10/10/1993 191.00 11/10/1997 408.00 12/10/2001 488.00 11/10/1993 191.00 12/10/1997 408.00 1/10/2002 488.00 12/10/1993 191.00 1/10/1998 408.00 2/10/2002 490.00 1/10/1994 191.00 2/10/1998 408.00 3/10/2002 490.00 2/10/1994 191.00 3/10/1998 408.00 4/10/2002 474.00 3/10/1994 191.00 4/10/1998 408.00 5/10/2002 520.00 4/10/1994 191.00 5/10/1998 452.00 6/10/2002 520.00 5/10/1994 191.00 6/10/1998 452.00 7/10/2002 520.00 6/10/1994 219.00 7/10/1998 452.00 8/10/2002 520.00 7/10/1994 219.00 8/10/1998 452.00 9/10/2002 520.00 8/10/1994 219.00 9/10/1998 452.00 10/10/2002 520.00 9/10/1994 219.00 10/10/1998 452.00 11/10/2002 557.00 10/10/1994 219.00 11/10/1998 482.00 12/10/2002 557.00 11/10/1994 219.00 12/10/1998 482.00 1/10/2003 557.00 12/10/1994 219.00 1/10/1999 482.00 2/10/2003 557.00 1/10/1995 219.00 2/10/1999 482.00 3/10/2003 557.00 2/10/1995 223.00 3/10/1999 482.00 4/10/2003 557.00 3/10/1995 371.00 4/10/1999 482.00 5/10/2003 690.00 4/10/1995 371.00 5/10/1999 555.00 6/10/2003 690.00 5/10/1995 371.00 6/10/1999 555.00 7/10/2003 690.00 6/10/1995 371.00 7/10/1999 555.00 8/10/2003 690.00 7/10/1995 371.00 8/10/1999 475.00 9/10/2003 690.00 8/10/1995 377.00 9/10/1999 475.00 10/10/2003 690.00 9/10/1995 377.00 10/10/1999 475.00 11/10/2003 794.00 10/10/1995 377.00 11/10/1999 569.40 12/10/2003 794.00 11/10/1995 377.00 12/10/1999 475.00 1/10/2004 794.00 12/10/1995 377.00 1/10/2000 475.00 2/10/2004 794.00 1/10/1996 377.00 2/10/2000 475.00 3/10/2004 794.00 2/10/1996 377.00 3/10/2000 475.00 4/10/2004 794.00 3/10/1996 377.00 4/10/2000 475.00 5/10/2004 897.00 4/10/1996 377.00 5/10/2000 528.00 6/10/2004 897.00 5/10/1996 391.00 6/10/2000 528.00 7/10/2004 897.00 6/10/1996 391.00 7/10/2000 528.00 8/10/2004 897.00 7/10/1996 391.00 8/10/2000 528.00 9/10/2004 897.00 8/10/1996 381.00 9/10/2000 528.00 10/10/2004 897.00 9/10/1996 381.00 10/10/2000 528.00 11/10/2004 1,009.00 10/10/1996 381.00 11/10/2000 528.00 12/10/2004 1,009.00 11/10/1996 379.00 12/10/2000 528.00 *1/10/2005 1,009.00 12/10/1996 379.00 1/10/2001 528.00 Total 66,226.40 1/10/1997 379.00 2/10/2001 528.00 2/10/1997 379.00 3/10/2001 528.00 *Refunded, not included 3/10/1997 379.00 4/10/2001 528.00