55 ELM STREET HARTFORD, CONNECTICUT 06106-1775 Telephone: (860) 702-3480 Facsimile:(860) 702-3556
HEALTH CARE COST CONTAINMENT COMMITTEE
	STATE OF CONNECTICUT OFFICE OF THE STATE COMPTROLLER HEALTHCARE POLICY & BENEFIT SERVICES DIVISION

HEALTHCARE POLICY & BENEFITS SERVICES DIVISION MEMORANDUM 2010-05

November 29, 2010
 
TO THE HEADS OF ALL STATE AGENCIES

I. INTRODUCTION

The purpose of this memorandum is to address concerns of employees enrolled in the AFLAC Cancer Insurance product regarding a recent solicitation in which Eric Meyerhoff (AFLAC's former primary representative) encourages them to enroll in Allstate's cancer insurance. 
 
II. DISCUSSION

In July 2010, the Office of the State Comptroller terminated its contract with AFLAC.  In August 2010, AFLAC advised all current cancer insurance participants that after December 31, 2010 they could no longer pay for such coverage through payroll deduction and that those who wished to continue coverage after that date should make direct billing arrangements with AFLAC.  

Mr. Meyerhoff used information he obtained from AFLAC to solicit current policy-holders to shift their cancer coverage to Allstate - with which he is now affiliated.  Not only did the unauthorized solicitation contain statements, calculated to mislead participants into believing that their existing cancer coverage would be terminated at the end of the year, but it also contained a prefilled Allstate application containing each employee's name, address and Social Security number.

This solicitation was not authorized by the Office of the State Comptroller or by AFLAC.  We have referred this matter to the Department of Insurance and the Office of the Attorney General for investigation and informed Allstate and the third party enrollment firm, Advanced Voluntary Concepts "AVC" that was mentioned in the Meyerhoff letter of our objections.  Both Allstate and AVC have assured us that they will refuse to process any applications returned in response to this solicitation.       

III. CONCLUSION

The OSC will be following up with AFLAC and the appropriate authorities to consider what remedies may be required to correct this misuse of employee information. 
 

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