LV firm sues over jump in health insurance costs

Friday, March 9, 2001 | 11:50 a.m.

Mikohn Gaming Corp. sued a Las Vegas health plan provider, alleging it tricked the gaming supply company into signing a renewal contract that raised insurance rates by about 46 percent.

In a Clark County District Court lawsuit, Mikohn sued Managed Care Consultants Inc., alleging it refused to rescind what Mikohn called "the improper and surprise rate increase" and allegedly stalled for several months on the pretext it was investigating the increase when Mikohn demanded Managed Care honor insurance rates agreed to in October 1998.

Managed Care had offered on Oct. 28, 1998, to provide Mikohn with a health plan from Jan. 1, 1999, through June 30, 2000, with "maximum aggregate claim costs of $111.68 a month for an employee, $241.55 a month for an employee and a spouse, $149.10 a month for an employee and children and $340.17 a month for an employee and family," the suit said.

But Managed Care, when it contacted Mikohn on Sep. 21, 1999, to renew the health plan, allegedly concealed the fact that the renewal contract "grossly increased the maximum aggregate claim costs to $152.61 a month for an employee, $330.09 a month for an employee and spouse, $203.75 a month for an employee and children and $464.86 a month for an employee and family."

Managed Care officials could not be reached for comment on the allegations.