CareFirst BlueCross BlueShield customers who saw their monthly premiums rise when they turned 50 years old may get a promised refund that is being negotiated between the health insurance carrier and the Maryland Insurance Administration, a state official said Wednesday.
“We will most likely enter a consent agreement with them that will indicate the terms of a refund,” said Karen Barrows, a spokeswoman for the state administration.
The possible refunds follow complaints and an eventual lawsuit that was filed this week by Robert Cort, 51, of Columbia, who alleges that his premium went up on the first of September last year instead of his actual birthday, Sept. 19. He states that he should have only been charged for the portion of the month after he turned 50.
Baltimore law firm Brown, Goldstein & Levy filed a lawsuit on Cort?s behalf in Baltimore City Circuit Court Sept. 19. Attorney Andrew Levy states that the lawsuit seeks class-action status so that others could get refunds for alleged overcharges by Owings Mills-based CareFirst.
“The premature billing amounts to an overcharge for that month of $78.60 in Mr. Cort?s case alone; it potentially amounts to millions of dollars when you consider how many people CareFirst insures and how most of those policyholders do not have birthdays that occur on the first day of the month,” Levy said.
A July 5 letter to the MIA from Livio Broccolino, vice president and deputy general counsel for CareFirst, indicated that CareFirst is planning to amend its policy on premium increases and promises refunds.
” ? Please accept this as confirmation that CareFirst will be filing universal contract amendments to accommodate this practice and will discontinue engaging in it until such time as the amendments are approved by the Maryland Insurance Administration,” Broccolino stated in his letter.
“In addition, please be aware that CareFirst will be providing refunds to members who were assessed the full month?s premium instead of a prorated amount,” Broccolino added.
The typical CareFirst policyholder faces an premium hike when the oldest insured individual in the household turns the ages of 18, 30, 40, 50 or 60.
