Blue Cross pays the price

Several thousand customers of Blue Cross and Blue Shield of North Carolina were whipsawed by billing and enrollment malfunctions caused by technology problems. These customers suffered a lot of anguish and in some cases financial hardship, in addition to problems with coverage, because of the gaffes.

Now Wayne Goodwin, state insurance commissioner, has levied a record $3.6 million fine on the company. But that’s only part of the company’s expenses related to these problems, which include $11.3 million in restitution to customers (with more likely) and $8.3 million in interest resulting from late reimbursements to doctors and other providers.

Goodwin has been a consumer-oriented commissioner, though he’ll certainly realize a political benefit from fining this big insurance company. That said, it’s important to note that Blue Cross was appropriately contrite, saying it was “deeply sorry for the challenges that this created for our customers and providers.”

It’s in the state’s interest, frankly, for BCBS of North Carolina to remain healthy. The company will soon be the only company offering coverage in 100 counties under the Affordable Care Act, and it will soon decide whether it will continue to participate in ACA open enrollment in 2017. It’s important that it does.

This story was originally published September 18, 2016 at 2:30 PM with the headline "Blue Cross pays the price."