The Illinois Department of Insurance has fined the parent company of Blue Cross Blue Shield of Illinois for violating material change notice requirements.
For the first time ever, IDoA says they are fining the health care insurance provider $339,000 for being over 200 days late in filing the requirement notices after terminating Springfield Clinic as an in-network provider at the end of last year. The change has caused several businesses and individuals to flee from the insurance company to keep in-network doctors with Springfield Clinic.
According to a press release this morning, IDoA found that the company didn’t file a proper termination notice until this past Thursday. Under state law, insurers are required to report any material change to an approved insurance network plan within 15 days if the change occurs within a mid-plan year.
Blue Cross Blue Shield must pay the fine immediately, and the company has 10 days to file an appeal.
This comes on the heels of a WCIA investigative report exposing a string of consumer protection concerns that include a ghost network of doctors and a lack of in-network specialists. Some Illinois General Assembly members are now calling for an attempt to end the health insurance giant’s tax exempt status in the state during this legislative session.