Publication Date

Publication Date: 

Blue Cross and Blue Shield of North Carolina (Blue Cross NC) signed the Department of Insurance (DOI) Voluntary Settlement Agreement and we are prepared to pay the fine for the technological problems we experienced earlier this year. We have been actively addressing these issues, and expect to be stronger as a result of this process.

We remain committed to our customers and the communities of North Carolina, and are deeply sorry for the challenges that this created for our customers and providers.

What amount did the DOI fine Blue Cross NC?
Blue Cross NC will pay $3.6 million dollars to the DOI. The civil penalty shall be subject to disbursement in accordance with the provisions of Article IX, Section 7 of the North Carolina Constitution for the benefit of the public schools.

The fine is in addition to the approximately $11.3 million in premium refunds made to policyholders and approximately $8.3 million in late interest payments on claims made by health care providers.

Will premiums rise in order to pay for the fine?
No.  Customers' premiums will not be impacted by this fine. Premium rates are driven primarily by the cost and use of medical services.

Can we see a copy of the report?
The Voluntary Settlement Agreement is the only public document resulting from the Department of Insurance's examination.

Will this fine influence your decision to participate in the Affordable Care Act in 2017?
This fine has no bearing on our decision to participate in the ACA for 2017. We will announce our plan for participation before the end of the month.