Colorado Regulators Fine Anthem Units

By Allison Bell

January 31, 2002 at 07:00 PM

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NU Online News Service, Jan. 31, 1:53 p.m. – The Colorado Division of Insurance has fined two Colorado units of Anthem Inc., Indianapolis, a total of $101,500 because of what it says were violations of state "prompt pay" laws.

Colorado requires state-regulated health insurers to pay clean electronic claims from doctors and other health care providers within 30 days, and clean paper claims within 45 days.

Rocky Mountain Hospital and Medical Services Inc., an Anthem unit which now does business as Anthem Blue Cross and Blue Shield, was fined $56,600, and HMO Colorado Inc., a Rocky Mountain subsidiary, was fined $45,000, according to Colorado insurance regulators

Anthem acquired Rocky Mountain in November 1999, after Rocky Mountain suffered through months of well-publicized financial problems.

The violations the Colorado examiners identified took place before Anthem had time to improve the Rocky Mountain operations, Anthem spokesman Don Stengele says.

The national Blue Cross and Blue Shield Association, Chicago, recently gave the Colorado operation an award for improvement in service, and enrollment has increased 200,000 from the day Anthem took over, Stengele adds.

"We wouldn't be growing like that if we weren't providing great service," Stengele says.

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