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Press Release

January 20, 2016

Contact: Ron Klug, 212-709-1691

NYDFS ANNOUNCES HEALTHNOW NEW YORK TO PAY $750,000 FINE FOR INSURANCE LAW VIOLATIONS

Insurer Discriminated Against Certain Small Groups Seeking Coverage

The New York State Department of Financial Services announced today that HealthNow New York Inc. will pay a $750,000 fine for violating New York State regulations with respect to its small group policy renewal program.

An investigation by the New York State Department of Financial Services (DFS) found that between 2007 and 2013, in contravention of New York Insurance Regulations, the insurer failed to offer coverage to small groups with fewer than five people enrolled.

Acting Superintendent of Financial Services Shirin Emami said: “Correcting these violations of the Insurance Law helps preserve the integrity of small group coverage and New York’s community rating standards. DFS is pleased that HealthNow has cooperated in resolving this issue in a responsible manner.”

HealthNow operates under the names of Blue Cross and Blue Shield of Western New York; HealthNow, within its Central New York division; and Blue Shield of Northeastern New York, within its Eastern New York division.

Please view a copy of the consent order between HealthNow and DFS here.

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