Aug. 01--A former Tucson insurance agent was indicted by a state grand jury on charges related to insurance fraud involving senior citizens.

Megan Monroe Racz, 30, was indicted in connection with 37 victims, Attorney General Tom Horne announced in a news release. Four victims were deceased; the other 33 victims are all age 65 or older, Horne said.

Racz was indicted on one count of fraudulent schemes and artifices, one count of theft, six counts of aggravated identity theft, two counts of identity theft, and four counts of forgery.

The state alleges that during the Medicare open enrollment period from November through December 2011, Racz transferred the Health Net Medicare supplemental policies of the victims, four of whom were dead, to UnitedHealthcare supplemental policies without their consent. The Arizona Insurance Department learned about the transfers from UnitedHealthcare, Health Net and policyholders.

Racz received more than $25,000 in commissions for transferring the Medicare supplemental policies, the state alleges.

In an arraignment Tuesday, Racz pleaded not guilty to all 14 counts before Pima County Superior Court hearing officer Roger Duncan.

Each policyholder in the case stood to gain $39 a month, or $468 a year, and better health-care benefits when they were removed from Health Net Medicare and enrolled into UnitedHealthcare, said attorney Larry J. Lingeman, who is representing Racz.

Lingeman said he could not comment further on the case.

In February, an Arizona Daily Star article said Racz was under federal investigation as part of a fraudulent scheme case involving the enrollment of 900 Tucson-area Medicare beneficiaries in different supplemental Medicare Advantage health plans without their consent.

On Jan. 25, the state Insurance Department revoked Racz's license.

Contact reporter Carmen Duarte at 573-4104 or cduarte@azstarnet.com

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