Megan Monroe Racz, age 30, from Tucson has been indicted by the State Grand Jury on charges related to insurance fraud involving senior citizens. All 37 of Racz’s alleged victims are aged 65 or older.
Allegedly Racz, received over $25,000.00 in commissions for unauthorized transfers of the Medicare supplemental policies.
While acting as an insurance agent, Racz transferred the Health Net Medicare supplemental policies of 37 people, four who were deceased at the time, to United Health Care supplemental polices without the consent of the policyholders. Racz allegedly committed the insurance fraud during the Medicare open enrollment period from November 2011 through December 2011.
The unauthorized transfers were brought to the attention of the Arizona Department of Insurance by United Health Care, Health Net, and policyholders, who were notified their Health Net Medicare supplemental policies were being cancelled or who received information about new United Health Care policies that they never requested.
United Health Care and Health Net worked together to see that none of the policyholders’ Medicare coverage lapsed.
Racz was formally indicted on one count of Fraudulent Schemes and Artifices, a class 2 felony; one count of Theft, a class 2 felony; six counts of Aggravated Identity Theft, class 3 felonies; two counts of Identity Theft, class 4 felonies; and four counts of Forgery, class 4 felonies.
On January 25 the Arizona Department of Insurance revoked Racz’s license after the insurance fraud was first reported.