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North Dakota fines Blue Cross $30,000 for misleading information

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region Park Rapids, 56470

Park Rapids Minnesota PO Box 111 56470

Insurance Commissioner Adam Hamm announced today that he has fined Blue Cross Blue Shield of North Dakota $30,000 for violations including using misleading information for marketing purposes.

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The Blues failed to file its physician participation agreement with the North Dakota Insurance Department, as required by law. The resulted in a $10,000 administrative penalty, the maximum.

Also, the agreement with physicians failed to contain certain provisions required by law, resulting in a second $10,000 maximum fine.

Finally, regulators found that the North Dakota Blues misstated their administrative costs, resulting in a third maximum $10,000 fine.

The fines follow an extensive examination by Hamm's department into expenses. The Blues have agreed to correct the violations and pay the $30,000 in fines, Hamm said.

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