Feb 22, 2010 12:25 pm US/Pacific
Calif. Insurance Comm. Finds Blue Cross Violations
SACRAMENTO (AP) ― California's insurance regulator said Monday his office has found more than 700 violations by the state's largest for-profit health insurer, including late payment of claims, giving misleading information to consumers and failing to cooperate with regulators.
Anthem Blue Cross faces a maximum $10,000 penalty for each violation, Insurance Commissioner Steve Poizner said. His office said the violations occurred between 2006 and 2009.
Kristin Binns, a spokeswoman for the insurer, said the company takes the allegations seriously, though she noted they represent a fraction of the company's millions of claims.
The Los Angeles-based company, a subsidiary of Indianapolis-based WellPoint Inc., has been criticized recently by Poizner, state and federal lawmakers, and Obama administration officials for proposing rate hikes as high as 39 percent. The company put those increases on hold until May 1.
Poizner said he was filing official accusations with the state's Office of Administrative Hearing alleging the policy handling violations. That will trigger hearings on whether the insurer should be fined.
"Complaints just keep coming in and increasing over time. When it gets into the hundreds, it gets my attention," Poizner said at a state Capitol news conference. "It's only when a health care company doesn't take corrective action or is belligerent or uncooperative with us that we take this type of action, and that's the case with Anthem Blue Cross."
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