DOI Fines Parent Company of BCBSIL for Violating ISMS-Backed Network Adequacy and Transparency Act

March 25, 2022

Earlier this week, the Illinois Department of Insurance (IDOI) announced that it would assess a fine of $339,000 to the parent company of Blue Cross Blue and Shield of Illinois (BCBSIL) for violating the state’s Network Adequacy and Transparency Act (NAT Act).

Specifically, BCBSIL failed to submit updated network adequacy filings after the termination of its contract with Springfield Clinic in 2021. That paperwork finally arrived to the IDOI last week – 339 days late at a fine of $1,000 per day.

ISMS strongly advocated for the NAT Act to fix the problem of Illinois residents not having access to the medical care that they were promised when they signed up for their health insurance due to inadequate provider networks.

This is the first time ever that the IDOI fined an insurer under the Act.

If you have questions, please contact ISMS Senior Vice President of State Legislative Affairs Erin O'Brien by email.

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