DENVER, Sept. 16 /PRNewswire/ -- Anthem Blue Cross and Blue Shield in Colorado (Anthem) today announced that it will provide a one-time premium credit to certain of its 2010 policyholders that had individual policies of health insurance. The one-time credit will be provided to policyholders either as a premium credit on their December statement or through a check. Anthem has agreed to provide this credit as part of an agreement with the Colorado Department of Insurance (DOI) regarding our 2010 individual rates and believes the credit is in the best interest of its members.
This credit does not apply to Colorado Major Med, Custom Plus Plan or group conversion policyholders. It also does not apply to Anthem Group Plan members who receive their insurance through an employer.
In October 2009 the Colorado Division of Insurance (DOI) approved Anthem's 2010 individual rates for the policies that are the subject of this agreement. However, earlier this year, the DOI notified Anthem that it was initiating a market conduct examination of these rates.
Anthem is confident that its rates are appropriate, consistent with state law and in line with those of its competitors. As part of the agreement, the DOI reaffirmed our 2010 individual premiums and those rates will not change. The DOI did not levy any fine against Anthem as a result of the market conduct examination. The market conduct exam will be closed without resolution of the factual and legal issues as well as the disputes that were the subject of the market conduct exam. Anthem is not admitting any fault or wrongdoing with respect to either the factual and legal issues or the disputes that were the subject of the market conduct exam. Anthem agreed to this premium credit in order to terminate the market conduct examination so that the company can dedicate its full attention to serving its members. The total amount of credits to impacted policyholders is approximately twenty million dollars.
Anthem will notify affected members about the premium credit process in November/December 2010
How the one-time premium credit will be distributed:
- In order to receive the premium credit, recipients must have been an individual health member and paid insurance premium for coverage at any time during the period from January 1, 2010 through September 30, 2010.
- The credit will be allocated on a pro rata basis based on the amount of the member's premium paid for their effective dates of coverage from January 1, 2010 to September 30, 2010 and will be applied as either a reduction in premium on their monthly invoice or a check in the mail.
About Anthem Blue Cross and Blue Shield in Colorado:
Anthem Blue Cross and Blue Shield is the trade name of Rocky Mountain Hospital and Medical Service, Inc., an independent licensee of the Blue Cross Blue Shield Association. ® ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association. Additional information about Anthem Blue Cross and Blue Shield in Colorado is available at www.anthem.com.
SOURCE Anthem Blue Cross and Blue Shield in Colorado