Regulators order $1.29 million fine from Anthem BCBS for inflated Medicaid Supplement premiums

DENVER — Colorado regulators are ordering Anthem Blue Cross and Blue Shield to pay $1.29 million to disabled state residents that purchased Medicare Supplement plans at higher premiums than non-disabled customers.

The Colorado Division of Insurance said the insurance group didn’t offer correct premiums for about 219 disabled members after they turned 65, with the inflated rates being offered as far back as 2006, according to a press release.

Anthem will notify customers about the refunds and offer to reinstate coverage to affected members who cancelled their policies in the coming week. Any disabled customer or the heirs of anyone who enrolled in an Anthem Colorado Medicare Supplement policy between 2006 and 2019 before and after turning 65 may be eligible for a refund of the difference between the two premiums and added interest.

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The Division of Insurance is also fining Anthem $100,000, with a portion to be waived if the insurer group fully complies with the order.

It’s unclear how many customers in Northern Colorado or the Boulder Valley were affected. The Colorado Division of Insurance told BizWest it did not have the customer’s addresses on file.

In an emailed statement, Anthem said the premium mismatches were a mistake.

“Anthem Blue Cross and Blue Shield in Colorado (Anthem) is committed to delivering high-quality, affordable healthcare services that help consumers improve their health and well-being,” the company wrote. “Through a review with the Colorado Division of Insurance (DOI), we learned of an error that affected the Medicare Supplement premiums paid by approximately 200 of our consumers. To address this issue, Anthem will update records for these individuals, adjust premiums correctly, and issue refunds where appropriate. Anthem will continue to work with the Colorado DOI and impacted consumers to ensure this issue is resolved.”