BCBSNC Issues Response to Resolution of Emergency Room Claims Issue

December 19, 2003

Blue Cross and Blue Shield of North Carolina issued a statement from Bob Greczyn, president and CEO, on a settlement between BCBSNC and the North Carolina Department of Insurance on the emergency room claims issue:

“Blue Cross and Blue Shield of North Carolina has taken full responsibility for the emergency room claims issue. On our own initiative, we reported the problem to the Department of Insurance and we paid more than $17 million – including interest – to customers, physicians and hospitals that were underpaid as a result of our error.

“We took too long to discover and fix this problem. However, let me emphasize that we found the problem, we voluntarily reported it, and we fixed it. We have made appropriate systems and procedural changes to prevent a recurrence.

“We agreed to this settlement because we do not want an issue that we have fixed to distract us from our focus on our customers. The settlement amount will go to benefit North Carolina’s public schools, and that is a good outcome from this situation.

“We will work hard to continue to do the right thing by our customers. That includes admitting our mistakes and correcting them.” About Blue Cross and Blue Shield of North Carolina

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