Blue Shield of California will pay $285,000 to California for charging members copays for contraceptive services.
The insurer will also pay over $225,000 in reimbursements to members incorrectly charged for services, according to an Aug. 29 news release from the California Department of Managed Healthcare.
California requires health plans to cover contraceptive drugs, devices and products with no cost-sharing. According to the Department of Managed Healthcare, a Blue Shield of California member was billed a copay for the removal of a IUD, which should have been covered at no cost.
The complaint prompted a broader investigation, according to the news release, which identified more than 300 Blue Shield of California members improperly charged for contraceptive services.
"Blue Shield of California recognizes the important role the Department of Managed Health Care plays in regulating our industry," a spokesperson said in a statement shared with Becker's. "We have been cooperative throughout the process of this investigation and have taken active steps to correct the issues. We remain focused on our goal to provide access to sustainably affordable health care that is worthy of our family and friends."
Other states have taken action against plans for allegedly violating contraceptive coverage requirements. In June, UnitedHealthcare of New York paid $1 million to settle allegations it failed to cover contraceptives as required by state law.