SPRINGFIELD, Ill. (WCIA) — The Illinois Department of Insurance announced Thursday they have fined Blue Cross Blue Shield of Illinois over half a million dollars.
The insurance company paid a $605,000 fine for violating several laws related to network adequacy. Among the complaints, the state agency found Blue Cross Blue Shield of Illinois included providers in its directories that were beyond the maximum time and distance standards, did not list all available specialty providers for HMO plans, and failed to audit their own directories.
“The law requires health insurance companies to have a provider network that meets proper time and distance standards for consumers to receive care, as well as up-to-date, accurate directories identifying which providers are in-network,” IDOI Director Dana Popish Severinghaus said. “When companies under our regulatory authority are in violation of insurance laws meant to protect consumers, we will take action.”
Last year, the WCIA Target 3 Investigative team released a series of investigations on Blue Cross Blue Shield violating continuity of care.
According to the Department of Insurance, Blue Cross Blue Shield’s parent company Health Care Service Corporation agreed to pay the fine and will take corrective action.
The Joint Commission on Administrative Rules is scheduled to meet later this month. At that meeting they will vote on a potential overhaul of the rules around how insurance companies report provider information.