Illinois fines BCBS $339K after Springfield Clinic contract termination

In a first-time move, the Illinois Department of Insurance is fining Blue Cross Blue Shield of Illinois for failing to provide information to the state after its contract termination with Springfield Clinic.

Health Care Service Corp., the parent company of BCBS of Illinois, is being fined $339,000 for violating the material change notice requirement under the state's Network Adequacy and Transparency Act. 

The Illinois Department of Insurance says BCBS did not properly file updated network adequacy filings after the termination of its contract with Springfield Clinic in November.

Payers are required to report any material changes to an approved network plan to the IDOI director within 15 days. Late fees are $1,000 per day.

IDOI received BCBS' final filing for its network adequacy review March 17. 

Since the filings were 244 days late and 95 days late, total fines were $339,000. 

"Insurance companies must be able to show that they have adequate provider networks, so that Illinois consumers have access to the medical care and providers that they pay for," Gov. J.B. Pritzker said. "This fine should serve as notice that we will require insurers to maintain adequate provider networks and uphold all consumer protections under the law."

BCBS must pay the fine immediately and has 10 days to contest.

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