Insurer fined $339K after medical group, ASC contract termination

Health Care Service Corp., the parent company of BCBS of Illinois, was fined hundreds of thousands of dollars after terminating its contract with a 600-physician medical group and ASC.

BCBS of Illinois terminated its contract with Springfield (Ill.) Clinic last year but failed to appropriately update network adequacy filings in November. The termination knocked 100,000 covered patients out of network with the practice, surgery center and endoscopy center.

The state requires health plans to report material changes to approved network plans to the Illinois Department of Insurance within 15 days of the change, and BCBS of Illinois was 244 days late.

The state assessed BCBS of Illinois a $339,000 fine.

Read more about the fine here.


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