Blue Cross Is Fined for Overcharging Customers
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California regulators said they had fined Blue Cross of California for accidentally overcharging 45,000 policyholders in April. A computer glitch resulted in $12 million worth of duplicate premium charges to credit and debit cards.
Blue Cross, which must pay $150,000 to the state Department of Managed Health Care, said the problem was quickly fixed and excess premiums had been refunded. The company also apologized and said it had compensated some customers for late fees or penalties caused by the mistake.
State regulators, however, criticized Blue Cross for failing to notify them immediately of the problem.
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