California’s Largest Health Insurers Face $5M In Fines

LOS ANGELES (AP) — California’s seven largest health insurers face nearly $5 million in fines for allegedly failing to pay hospitals and physicians fairly and on time.

California Department of Managed Health Care Director Cindy Ehnes says improper claim payments are burdening health providers as they struggle to stay afloat in a bad economy.

The regulator says audits found seven health plans weren’t meeting a legal threshold of paying 95 percent of claims correctly.

Anthem Blue Cross and Blue Shield of California are being fined $900,000 each, and United/Pacificare is being fined $800,000. HealthNet and Kaiser Foundation Health Plan are being fined $750,000 each; Cigna is being fined $450,000; and Aetna is being fined $300,000.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments

One Comment

  1. miguel jules pacheco says:

    THAT’S THE CRUST OF THE PIE. WHY DON’T YOU GUYS GO DEEP INTO THAT PARTICULAR MATTER. INSURANCE COMPANIES ARE ARROGANT WHEN ONE DEMAND BETTER SERVICES AND THE PROVIDERS DENIYING SERVICES THAT ONE IS ASKING FOR. !!!!

  2. Joe Kreel says:

    And how many of them are fraudulent claims that had to be resubmited??? If the policy says they don’t pay for something they don’t pay, but then again California is so broke they have to look foe some way to get money. Good job California keep it up and soon no insurance company will want to sell in youe state then you will have a deficit problem

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