Blue Cross pays $45K penalty on network issue

Blue Cross and Blue Shield of Minnesota is paying a $45,000 penalty to state regulators in response to allegations the health insurer failed to make a timely update to an online listing of hospitals and clinics covered through one of its health plan networks.

In a consent order released this month, the Minnesota Department of Commerce alleged that Blue Cross failed to delist North Memorial Medical Center and affiliated clinics in a timely manner from its website tools as in-network providers in the company's "Consumer Value Network" product.

The failure occurred during a portion of open enrollment for 2015, according to the consent order. Commerce also alleged the health insurer did not properly maintain a system that allowed people with the coverage to accurately identify in-network providers.

Blue Cross did not admit wrongdoing as part of the settlement, said Ross Corson, a Commerce Department spokesman.

"[Blue Cross] voluntarily agreed that, for individual members who purchased a health plan utilizing the Consumer Value Network for any time in 2015 and obtained services from North Memorial ... it would reprocess the member's 2015 North Memorial claims to reflect in-network benefits," the consent order states.

"[Blue Cross] has completed the reprocessing of claims, which resulted in increased payments of $327,791."

In a statement, Blue Cross said it sent written notices to members who previously received care at North Memorial about the network change. But for "a short time in 2015, the network status for North Memorial displayed inaccurately for some members using our online search tool," the insurer said.

"We recognized and apologized for the difficulties experienced by these members and made every effort to remedy situations that were brought to our attention," Blue Cross said. "The network closed in 2016 and is no longer offered."

Christopher Snowbeck • 612-673-4744