Dive Brief:
- California-based insurer Health Net, which manages health benefits for individuals in all 50 states and DC through group, individual, and government health programs, is facing a $350,000 fine by the federal government.
- The company is reported to have provided incorrect information to approximately 14,000 Medicare enrollees in Arizona, according to the Arizona Republic.
- The government says this was the second time Health Net provided incorrect information to Medicare customers regarding benefits and prescription drug plans.
Dive Insight:
Health Net failed to correct the faulty information it had disseminated until more than a month into open enrollment, reports the Republic. As a result, the company's actions impacted Medicare enrollees' ability to make informed decisions about their healthcare and prescription drug options for the 2015 plan year,” according to a notice about the fine.
Health Net, which has the option to challenge the fine by Sept. 15, apologized for the mistake and said it mailed customers the corrected information on Nov. 24, which was about five weeks into open enrollment.
“We are sorry for any confusion or frustration our errors caused,” Health Net said in a prepared statement. “We discovered the errors shortly after the materials were mailed last year and notified CMS. And we immediately began the process of sending corrected information to affected beneficiaries."