This Week
  • Rochester's business leaders have highest overall, future confidence.

  • Matthew Flanigan aims to build Flower City Habitat for Humanity.

  • When will downtown retail development gain momentum like the office and housing sectors?

  • Tender Loving Family Care follows a different model than most of its home care agency peers.

  • Taren Greenidge says helping Littler Mendelson clients do the right thing is rewarding.

  • See the 20th anniversary edition of the Forty under 40 supplement.

Blues refund $3.1 million for improperly billing, pay fines

Rochester Business Journal
November 28, 2012

Excellus Blue Cross Blue Shield has agreed to pay $250,000 in fines—$125,000 apiece to the State Attorney General’s office and the Department of Financial Services—for wrongly denying claims of some 12,000 subscribers.

The fines, announced Wednesday by state Attorney General Eric Schneiderman, come on top of $3.1 million the insurer repaid last year to patients, doctors and other providers who were improperly charged for services that should have been covered by their plans after the Blues failed to properly account for already met deductibles.

In some cases, patients paid providers for the denied amounts. In others, providers absorbed the cost. Most subscribers hit with the erroneous charges were enrolled in high deductible plans.

“An insurance policy is a two-way street. New Yorkers who live up to their end of the bargain by paying their premiums and deductibles deserve to have their insurance company live up to its promises by properly paying their claims,” Schneiderman said in a statement.

James Redmond, regional vice president of communication and community investment at Excellus, blamed the accounting error on a glitch that happened in a transfer to new software that caused it to deny claims even though deductibles were met.

“From the time we discovered that our computer system was miscalculating some of our members’ deductibles, we have worked to make our customers financially whole. We were addressing this long before discussions with the attorney general.  In fact, we self-reported the problem to the state in the first place,” Redmond said in an email.

Excellus believes it has reviewed all affected claims and reimbursed all affected subscribers and providers but also plans to send out letters in January offering further assistance to any who think they still might have an unresolved claim, Redmond said.

(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail

What You're Saying 

There are no comments yet. Be the first to add yours!

Post Your Own Comment


Not registered? Sign up now!

To Do   Text Size
Post CommentPost A Comment eMail Size1
View CommentsView All Comments PrintPrint Size2
ReprintsReprints Size3
  • E-mailed
  • Commented
  • Viewed
RBJ   Google