The Philippines’ largest auction house, Aetna, is facing a new threat as it struggles to stay afloat in a tough environment.
Aetna said Tuesday that it would stop selling health care and other services that cover people with preexisting conditions after an investigation by the Federal Trade Commission found that it had not adequately disclosed the extent of its financial ties to insurers and others.
The investigation was triggered by a lawsuit filed by a former Aetana employee and others who say the insurer and others have misclassified millions of consumers as having preexisted conditions and denied them care.
The company’s board of directors announced Tuesday that Aetas chief executive officer said the company would take steps to protect consumers’ health care needs in the wake of the investigation.
In a statement, AETANAS said it was “disappointed” in the FTC investigation, which was launched in September.
The company said it will begin a review of the FTC’s findings and “continue to provide services to the U.S. marketplace.”
The company also said it has committed to providing consumers with access to its Medicare-funded services.
It said that it is also “taking steps to provide our consumers with greater flexibility in selecting providers and services.”
The FTC investigation found that AETAS misclassified more than 30 million people with conditions under its reinsurance program and that the company’s financial ties with insurers and other health care providers had not been disclosed to regulators.
The FTC said Aetanas had misrepresented the extent to which its reinsurers covered people with pre-existing conditions, and that AAT had misclassified the number of people with Medicare coverage for those with preexisting conditions.
The FTC has launched investigations into more than 400 health care firms in the U-S., but the scope of its inquiry has expanded to the Philippines.
The Philippines is among a few countries where insurers have been criticized for denying coverage to those with preextra-cost conditions.