FierceHealthcareFierceHealthITFierceHealthFinanceFierceEMRHospital ImpactFierceMobileHealthcare   FiercePharma

Anthem Blue Cross agrees to $1M fine

Tools
Tags
Health Net
Department Of Managed Healthcare
Cancellations
California Department Of Insurance
Blue Shield Of California
Anthem Blue Cross

Anthem Blue Cross has agreed to pay a $1 million fine to the California Department of Insurance and offer new coverage to 2,330 people it dropped after they began submitting costly medical claims. It also agreed to repay the out-of-pocket expenses incurred by those beneficiaries after it dropped them, which may reach as much as $14 million.

In return for these actions, the Department will drop charges that Anthem broke state laws in the way it rescinded policies held by members in its PPO between 2004 and 2008.

The Department of Insurance settlement is actually the second blow to Anthem. Last year it agreed to pay the state's Department of Managed Healthcare a $10 million fine on related charges involving 1,770 members with HMO-type policies.

More trouble could be on the way, meanwhile. Anthem, along with Blue Shield of California and Health Net, is still facing individual and class-action suits alleging that it illegally dropped patients when they were sick to avoid paying their bills.

To learn more about Anthem's fortunes:
- read this Los Angeles Times piece

Related Articles:
Los Angeles sues Anthem for individual policy cancellations
Health Net set goals, bonuses based on policy cancellations
CA regulators plan limits to health policy cancellations
Blue Cross of CA settles plan-cancellation suits

Bookmark and Share
Get Your FREE FierceHealthcare Email Newsletter:
Comments (2) | Post a comment

Comments

you might want to do a follow up story as Anthem Blue Cross just announced a 30 40 % increase in premiums for individual buyers in the State of California. effective March 1,, 2009. there will be lots of fall out because of the extra large single billing period increase in premiums

Blue Cross is unconscionable! These increases are unprecendented, and more than cover the cost of the fines. Blue Cross (and other health insurers "self certify" as to their need for an increasel. The California Dept. of Insurance has almost NO control over the rates. The laws must be changed. Call your Assemblyperson and state Senator. Call Obama. This is radical!

Post new comment

The content of this field is kept private and will not be shown publicly.

More information about formatting options

To combat spam, please enter the code in the image.