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Colorado fines two health insurers

NEWS IN BRIEF — Posted April 5, 2010

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Colorado's Division of Insurance announced two fines levied against large health plans in March, based on reviews of the insurers' business operations.

Aetna was fined a total of $624,000 after the state's market conduct examination covering the year 2008. The insurance department found that Aetna had, among other things, failed to pay claims accurately and on time and failed to ensure that utilization review panel members were properly credentialed.

"Once we learned that the State of Colorado had identified compliance gaps in 2008, we took immediate action to resolve issues raised during the examination process," a corporate statement from Aetna said.

In a separate review, the division found that Cigna's HMO -- which the company stopped marketing in 2008 -- had broken some notification rules during 2007. The state fined Cigna $32,000. Cigna had no comment on the ruling.

The companies both paid their fines March 18.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/04/05/bibf0405.htm.

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