Washington health insurer issues refunds after overcharges
May 1, 2012
KPS Health Plans issued refunds to consumers after the top insurance regulator in the state said a billing error caused customers to be overcharged.
Officials said about 235 customers received bills at incorrect rates and, of the affected customers, 61 had the incorrect amount deducted from their bank accounts. Others received erroneous billing statements.
State Insurance Commissioner Mike Kreidler requested the company issue refunds and notify customers about the problem. Officials at Bremerton-based KPS Health Plans plan to issue refunds and letters of apology immediately.
The company also agreed to pay for any insufficient funds charges incurred by customers as a result of overcharges.
Starting in mid-April, Kreidler’s office started to receive complaints from consumers about the overbilling.