CHICAGO, Ill. — The Illinois Department of Insurance has fined the parent company of Blue Cross Blue Shield of Illinois for violating material change notice requirements.
For the first time ever, the IDOI says they’re fining the insurance provider for being over 200 days late in filing the notices after terminating Springfield Clinic as an in-network provider at the end of 2021.
“Insurance companies must be able to show that they have adequate provider networks, so that Illinois consumers have access to the medical care and providers that they pay for,” said Gov. JB Pritzker on Monday.
Pritzker added, “This fine should serve as notice that we will require insurers to maintain adequate provider networks and uphold all consumer protections under the law.”
The change has led some businesses and customers to leave Blue Cross Blue Shield to stay in-network for physicians with Springfield Clinic, which serves approximately 100,000 consumers in Central Illinois.
The IDOI found that Blue Cross Blue Shield did not file the proper termination notice until late last week.
Under state law, insurers have 15 days to report any material changes to an approved insurance network plan if the change occurs with a mid-plan year.
Blue Cross Blue Shield must pay the fine immediately, and its parent company has 10 days to file an appeal.
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