Blue Cross Blue Shield of LA Fined $150,000 by DOI

The Department of Insurance (DOI) has entered into a Consent Agreement with Blue Cross Blue Shield of Louisiana (BCBSLA) and the company has paid a $150,000 stipulated fine for non-compliance with state health care laws, according to Commissioner of Insurance Jim Donelon.

The fine and the Consent Agreement relate to approximately 150 instances of non-compliance with the state law known as the "Baby Bill." The bill, Act 269 of the 2004 Regular Session of the Louisiana Legislature, requires health insurers to notify the Department of Health and Hospitals (DHH) when one of its insured's gives birth to a Medicaid-eligible baby. DHH then conducts a cost analysis to determine if it would cost the state less money to maintain the newborn baby on its parents' health insurance plan and pay the baby's health insurance premium rather than enroll the baby in Medicaid. DHH estimates the Baby Bill can result in $10 to $20 million per year in Medicaid savings to the state.

According to the Consent Agreement, BCBSLA failed to properly notify DHH and other required persons and/or failed to provide the required documentation or information on newborns qualifying for coverage.

In addition to the $150,000 fine paid by BCBSLA, the company has agreed to stipulated fines for any possible future violations of $500 per day per violation.

-30-