Aetna, the third-largest health insurer in the country, agreed to reimburse more than $5.1 million on 73,000 health claims for college students it underpaid between 1998 and April 1, 2008.

 

The violation was discovered during an investigation by the office of Attorney General Andrew Cuomo.

 

“Students were particularly vulnerable to being cheated because they placed their trust in health care plans sponsored by their colleges,” Cuomo said.

 

The investigation found that Aetna's subsidiary, Aetna Student Health, formerly called Chickering Student Health, used an outdated reimbursement rate to pay students and doctors. About 73,000 students at more than 200 colleges – including 20 New York schools – were affected by the insurer’s underpayments. Now they will be paid more than $5.1 million, plus interest and penalties calculated under governing state law.

 

“We are pleased by the announcement from the attorney general that his office’s efforts appear to have resulted in an agreement that ensures that students across the country are reimbursed fairly for covered health care expenses,” Henry Chung, NYU’s associate vice president of student health, said.

 

Cynthia Michener, an Aetna spokeswoman, said “affected claims represent only 3 percent of the overall Chickering claim volume” and the issue will be addressed right away.

 

Affected people will be sent information on securing reimbursement, Aetna said. Moreover, the company will hire an independent examiner to monitor its compliance and training procedures.