Georgia Fines BCBS $100,000 for Variable Individual Policy Options

Georgia Insurance Commissioner John Oxendine has levied a $100,000 fine against Blue Cross Blue Shield of Georgia for offering cheaper insurance options to some policyholders but not to others, the Atlanta Journal-Constitution reports. Oxendine on Thursday said that the insurer must give 33,000 individual policyholders the same choices that others received. Blue Cross has 183,000 individual policyholders, about 80% of the state's market, according to Oxendine, who estimated that consumers could save more than $8 million if they are given the same choice. He added that Blue Cross gave the options of two less expensive but more restrictive health plans to those facing policy renewals in the first half of the year, but not to individuals with policy renewals later in the year. Blue Cross agreed to pay the fine but did not admit to any misconduct. Charlie Harman, a Blue Cross vice president, said communication to some policyholders "was not as complete as it could have been." Oxendine also said the agency is probing increases in Blue Cross health insurance premiums for individuals. Some people experienced increases of 100%, while the average increase was 36%. Blue Cross said it experienced high medical costs among people with individual policies (Miller, Atlanta Journal-Constitution, 12/9).