New York State
Insurance Department


ISSUED: 4/19/2002

FOR IMMEDIATE RELEASE

DEPARTMENT LEVIES OVER $4 MILLION IN PROMPT PAY VIOLATIONS

          Superintendent of Insurance Gregory V. Serio today announced that the Department has finalized another round of fines against health insurers and HMOs for violating the state’s Prompt Pay Law. The 22 insurers have been fined a total of $ 4,025,400 for failing to pay their claims on time.

          "The Department is committed to ensuring that health insurers meet their obligation to pay undisputed claims in a timely fashion and we will continue to penalize all health insurers for failure to do so," said Serio. "The Department closely monitors the claims performance of New York’s insurance industry and the health industry can expect the level of fines to increase until all companies are in compliance with the law."

          The Prompt Pay Law, which went into effect in January 1998, requires all health insurers to pay undisputed health insurance claims within 45 days of receipt – ensuring the timely payment of patient and provider claims.

          The fines by company are as follows:

Company

Fine

American Medical & Life Co. 1,000
Americhoice 7,500
CDPHP 47,200
CIGNA 236,950
Empire Healthchoice, Inc. 11,100
Excellus 15,000
GHI 244,200
HIP 209,300
Healthnow 595,500
Healthcare Underwriters Mutual Ins. Co. 9,750
Independent Health Association 39,800
Kaiser Foundation Health Plan 65,000
Metropolitan Life 43,300
MDNY 121,250
NYLCare 74,900
Oxford 918,200
PHS 93,500
Prudential 91,800
United Healthcare 161,600
Univera 21,800
U.S. Healthcare 751,650
Vytra 265,100
Total Fines 4,025,400

          Consumers and providers with prompt payment complaints can call the Department’s toll-free hotline at 1-800-358-9260.


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