State fines Humana Employers Health Care of Georgia $400,000
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Posted 11:21PM on Thursday, January 24, 2002
ATLANTA - Humana Employers Health Care of Georgia has been fined $400,000 for violating the state's prompt pay law, Insurance Commissioner John Oxendine announced Thursday. <br>
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It is the second time the HMO had to pay a penalty for delaying claims payments. Oxendine ordered the company to pay a $15,039 fine last year. <br>
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Thursday's fine was the largest ever against a health maintenance organization. It resulted from a review by Oxendine's office of data the HMOs are required to submit quarterly. <br>
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``I am disappointed that Humana hasn't been more conscientious in its claims payment practices,'' Oxendine said. ``After our initial reviews in 1999 and 2000, I gave Humana ample time to make necessary changes in its procedures before initiating new examinations. <br>
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``The bottom line is we expect all insurers to expedite the payment process,'' he said. <br>
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Previously, the largest penalty under the rule that requires health insurers to pay uncontested claims to a doctor or hospital within 15 days of receipt or mail a notice as to why the claim has not been paid was $300,000 against Cigna.