Aetna Sued Over Management of Huntsman International Health Plan

Aetna Life Insurance Co. used its position as third-party administrator for Huntsman International LLC’s self-funded health plan to enrich itself at the chemical manufacturer’s expense, according to a lawsuit filed in Texas federal court.

Huntsman, which hired Aetna to administer a health plan covering nearly 1,600 employees, retirees, and family members, says Aetna mismanaged the plan by approving fraudulent claims, pocketing undisclosed fees, overpaying medical providers, and commingling plan assets with its own funds.

Huntsman’s lawsuit, filed Monday in the US District Court for the Eastern District of Texas, says Aetna conceals these misdeeds by contractually limiting the company’s ...