Blue Cross of CA fined for overcharging members
Patient Financial Services Weekly Advisor, July 8, 2005
California regulators fined Blue Cross of California $150,000 for overcharging nearly 45,000 debit and credit card customers a total of $12 million in premiums in early April, according to a July 6 story in the San Francisco Chronicle.
The state Department of Managed Health Care, which announced the fine July 5, said Blue Cross had installed a new computer system and failed to set up proper controls when charging premium payments from members' debit and credit cards.
Blue Cross' system stopped working, and when it restarted, it erroneously generated multiple withdrawals of up to five payments per customer, the department found.
Members have been reimbursed, the Chronicle reported.
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