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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCalifornia’s Anthem Blue Cross, a subsidiary of Indianapolis-based WellPoint Inc., will pay a $1 million fine and an estimated $14 million in reimbursements for medical expenses paid out of pocket by 2,330 people dropped by the insurer.
The California Department of Insurance is set to announce the deal today, according to the Los Angeles Times. In exchange, the state agreed not to prosecute the company for breaking state laws in the way it dropped members with preferred provider organization policies between 2004 and 2008.
The settlement follows Anthem’s agreement last year to pay a $10 million fine to settle similar charges involving 1,770 members in HMO-type policies overseen by California’s Department of Managed Health Care.
The Anthem deal is the latest in a two-year effort by California regulators to crack down on health insurers that it believes dropped sick members for submitting expensive medical bills.
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