Blue Cross Blue Shield to Pay $10,000 Fine

By William Murphy

Published on September 21, 2006

According to a Delaware law passed in 2005, insurance companies must provide a preliminary response within 21 days to inquiries made by the Department of Insurance on behalf of consumers. Insurance Commissioner Matt Denn said that the inquiries to Blue Cross Blue Shield involved a variety of issues. He expressed concern about the insurer's delays because some consumers were awaiting word regarding approval of payments for medical treatments.

Blue Cross Blue Shield of Delaware, which provides health insurance coverage to more than 380,000 members, expressed regret that it had not met its obligation to provide timely responses. The insurer characterized the lapse as a departure from its usual practices and said that it had implemented changes to correct the problem.

Denn said that by law Blue Cross Blue Shield cannot pass the cost of the fine on to its policyholders through rate increases.

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