State reaches $3.1M refund settlement with insurer Excellus

New York Attorney General Eric Schneiderman has announced a settlement with insurer Excellus Bluecross Blueshield requiring refunds to patients and health care providers who overpaid due to improper accounting of deductibles.

Schneiderman's office says Excellus has so far made repayments totaling $3.1 million. Excellus reported that accounting errors affecting 12,000 customers processed after Sept. 1, 2011, followed software modifications with glitches that have since been repaired.

Excellus spokesman Jim Redmond says the company began working to fix the problem as soon as it was found and that it was reported and being addressed long before discussions with the attorney general's office.

Schneiderman says his Health Care Bureau started investigating Excellus's failure to properly track members' deductible and out-of-pocket expenditures in its automated claims system after receiving customer complaints.

Information from the AP was used in this report.