The Washington State Office of the Insurance Commissioner has announced it has fined Regence BlueShield $100,000 for denying contraceptive coverage to 984 women.
While Regence would cover the insertion of an intrauterine contraceptive device, it denied coverage for its removal, according to a news release from the Office of the Insurance Commissioner.
Regence claimed the removal of the device fell under a different benefit that required the service be "medically necessary." Regence stated that removal of an IUD was not covered simply because the device was outdated or the woman wanted to become pregnant.
The Office of the Insurance Commissioner ordered Regence to reprocess all 984 contraceptive claim denials going back to Jan. 1, 2002, when Washington state's contraceptive regulation took effect. According to this law, all state regulated health plans with comprehensive prescription drug coverage also must cover prescription contraceptives and the medical services associated with their removal.
In addition to the $100,000 fine, Regence also must pay eight percent interest to the policyholders on each of the claims that were improperly denied.
Read the news release on the fining of Regence BlueShield.
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