Sacramento, CA — Anthem Blue Cross is in the hot seat in Sacramento.
State Insurance Commissioner Steve Poizner is alleging that the insurance company has committed over 700 violations of California law.
“There’s evidence to suggest that there have been serious issues with the way Anthem deals with paying health insurance claims,” says Poizner. “Literally hundreds of violations dealing with paying claims very slowly, not completely, or on time.”
A federal law judge will decide whether the accusations are accurate, and Anthem could potentially face fines of $10,000 per violation.
Anthem Blue Cross has also been under scrutiny by the state and White House for its plan to increase insurance rates by up to 39 percent for some of the customers that buy individual coverage. The plan has been put on hold until May 1st.
Anthem corporate officials told the Associated Press that the company needs to increase premiums in part because younger, healthier people have been dropping insurance during the recession, leaving it with a pool of policyholders that is older and more dependent on healthcare services.
Written by bjhansen@mlode.com.
This post was last modified on 02/23/2010 3:59 pm