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NY Attorney General Reaches Settlement With Excellus Over Claims Denials

By: WROC-TV
Updated: November 28, 2012
New York Attorney General Eric Schneiderman has reached a settlement with insurance company Excellus after a system failure that denied thousands of claims.

Excellus has agreed to pay back over $3 million to thousands of its customers after a computer glitch caused unnecessary charges. The glitch did not account for paid deductibles, which sent out bills requiring customers who had already met their deductibles to pay for their healthcare services. The settlement also requires Excellus to come up with a system to keep track of their members' deductibles and out-of-pocket expenses.

In a statement released Wednesday, Excellus says the $3 million settlement includes the claims payments they already made plus interest.

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