Blue Cross Blue Shield of LA fined

Blue Cross Blue Shield of Louisiana has paid a $150,000 stipulated fine and entered into a Consent Agreement for non-compliance with state health care laws, according to Commissioner of Insurance Jim Donelon.

The fine and agreement relate to approximately 150 instances of non-compliance with the “Baby Bill,” a measure approved in 2004 that requires health insurers to notify the Department of Health and Hospitals when a client gives birth to a Medicaid-eligible baby. In such cases, DHH conducts a cost analysis to determine if would cost the state less money to maintain the newborn baby on its parents’ health insurance plan and pay the baby’s health insurance premium rather than enroll the baby in Medicaid.

The “Baby Bill” is designed to save $10 to $20 million annually in Medicaid savings to the state.

According to the Consent Agreement, Blue Cross Blue Shield of Louisiana failed to properly notify DHH and/or failed to provide the required documentation or information on newborns qualifying for coverage.

In addition to the $150,000 fine, the insurance company has agreed to stipulated fines for any possible future violations of $500 per day per violation.

Calls to Blue Cross Blue Shield of Louisiana went unreturned as of press time.