MEGA Life and Health Insurance, Mid-West National Life Insurance, and their parent company HealthMarkets, Inc are being sued by Massachusetts Attorney General Martha Coakley for routinely misleading people about what their health insurance policies cover. These are serious new allegations of misrepresentation and unfair and deceptive practices. The complaint also charges MEGA Life with disclosing the personal information of applicants and policyholders to various third parties. The suit seeks to require MEGA LIFE and Mid-West to pay refunds and make restitution to individuals harmed by the sales practices and substantial civil penalties and costs to the state.

These companies usually market under the umbrella of NASE, for National Association of the Self Insured, an association created solely to make it easier to target individuals and small businesses looking for low cost health insurance, but the coverage they provide is not what MEGA and Mid-West's advertising and sales agents make it out to be.