Blue Cross Blue Shield Pays Fine Over Springfield Clinic Dispute

By Benjamin Cox on March 31, 2022 at 7:53am

Blue Cross Blue Shield has paid a $339,000 fine handed down earlier this month by the Illinois Department of Insurance over the company’s failure to report major changes in its provider network and policy changes stemming from its ongoing dispute with Springfield Clinic.

Roughly 100,000 people were affected by the split between the insurance giant and one of Central Illinois’ largest

The Illinois Department of Insurance issued the fine earlier this month after thousands of the company’s customers lost their access to Springfield Clinic providers.

WCIA’s Mark Maxwell later uncovered that several customers found out that other doctors within the approved network were not taking patients, and sometimes were not even located in Illinois.

In a statement released yesterday, the insurance giant said it paid the fine, but is still seeking clarification of the state’s rules and how they are enforced.

Blue Cross-Blue Shield also says it continues to seek an agreement with Springfield Clinic. WICS Newschannel 20 reports that Harmony Harrington, Vice President, Government and Community Relations, Blue Cross and Blue Shield of Illinois says the central issue to the conflict with Springfield Clinic is exorbitant demands: “The central issue remains: Springfield Clinic is a for-profit entity that is demanding a skyrocketing 75 percent increase even though its rates are the highest in the Springfield market and tower 60 percent more than Chicago. Health care is not accessible if it is not affordable.”

The fine was the first time ever that IDOI had ever fined a company for being non-compliant with the Network Adequacy Transparency Act, a law that requires insurance companies provide a list of health care settings are accessible and are within proper time and distance standards for customers.