Insurer to cough up a record $1 million

By Cy Ryan (contact)

Thursday, Jan. 10, 2008 | 2 a.m.

Anthem Blue Cross and Blue Shield has agreed to pay a $1 million penalty to the state for failing to properly handle claims from Nevadans.

State Insurance Commissioner Alice Molasky-Arman said her office and the company reached a settlement in their dispute over claims payments. The $1 million penalty is Nevada’s largest assessment ever in a negotiated agreement.

The case stemmed from changes Anthem made to its claims processing system that resulted in overpayments by, and slow payments to, customers, Molasky-Arman said.

Anthem has agreed to submit quarterly reports on the steps it is taking to correct the problem. The company faces a $500,000 penalty for each quarter in which it fails to correct the problems, an insurance division spokeswoman said.

If Anthem doesn’t complete its overhaul of the claims system by the end of this year, it could be fined an additional $1 million.

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New regulations will better protect physically and mentally disabled people who require home health care.

Under a 2007 law, the state Office of Disability Services has adopted regulations to license intermediary service organizations that will provide home care, including light medical services such as giving insulin injections and medications.

Bureau Chief Todd Butterworth said there have been “some real fly-by-nights who did not provide quality care.”

The state will license only about six intermediary service organizations.

Attendants employed by the companies help severely disabled people with tasks such as taking a shower or preparing a meal.

To obtain a license, an intermediary service organization must pay an initial fee of $2,748 and an annual renewal fee of $1,374.

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The cost of obtaining or renewing a driver’s license will go up by 75 cents in September.

The current cost is $21.25, or $16.25 for people older than 65.

Ginny Lewis, director of the state Department of Motor Vehicles, said the agency will begin issuing driver’s licenses with new homeland security features required by the federal government.

The license will have 15 security features, compared with five on the current version.

The department has signed a $29.2 million contract with Digimarc Identification Systems to plan, prepare and deliver the new licenses.

Lewis told the state Board of Examiners on Tuesday that the new card cannot be counterfeited and will be produced at a more secure central location. The licenses now are made at branch offices.

Cy Ryan can be reached at (775) 687-5032 or at cy@lasvegassun.com.