According to the report, a number of in-state Medigap beneficiaries told the state Office of Financial and Insurance Regulation that they received letters in early July from Blue Cross Blue Shield incorrectly classifying them as out-of-state residents. The letters gave the residents 30 days to prove they live in Michigan.
The Office of Financial and Insurance Regulation has ordered Blue Cross Blue Shield to extend the period to 90 days. In-state residents pay significantly lower rates for Medigap coverage, approximately $121 a month compared to $194 for out-of-state residents. The letters informed residents that they would face a rate increase unless they could prove their Michigan residency within 30 days.
Medigap beneficiaries will now have until Oct. 17, 2011, to prove in-state residency.
Read the Bloomberg Businessweek report on Medigap.
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