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