Department of Financial Services fines HealthNow NY $750k

The New York Department of Financial Services has charged HealthNow NY — the parent company of Buffalo-based BlueCross BlueShield of Western New York — $750,000 in fines, according to Buffalo Business First.

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Between 2007 and 2013, HealthNow NY didn’t offer coverage to small groups with less than five prospective enrollees, according to the Department of Financial Services. This action violates New York’s rules on small group policy renewals.

HealthNow has paid the fee and premium increases will not be enforced.

Three years ago, DFS charged HealthNow NY $700,000 because it didn’t explain coverage and benefit rights to its enrollees.

The insurer is also the parent company of Latham-based BlueShield of Northeastern New York. In total, it has over 800,000 members. In 2014, HealthNow NY reported operating losses of $69.4 million.

More articles on payer issues:
Opinion: Should insurers give women incentives for getting mammograms?
9 things to know about the massive BCBS of NC system failure
Land of Lincoln co-op, University of Chicago Medical Center disaffiliate

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