Blue Cross tech delays clog North Carolina insurance phone lines

Continued issues at one of the largest insurance carriers in the state have kept customer service busy and drained agents of many hours

Insurance News

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Continued issues at the state’s largest health insurer have kept North Carolina agents’ phones ringing and customer service lines at the Department of Insurance busier than ever.

According to a News & Observer report, the North Carolina Department of Insurance has received more than 3,400 calls in the past month, including more than 850 complaints from customers, as a result of the technology problems plaguing Blue Cross and Blue Shield.

Now into their second month, the problems include overbilling by Blue Cross and the inability to make insurance payments or confirm coverage. The troubles began after the insurer transferred more than 400,000 insurance accounts from a legacy software to a new system. The accounts were primarily customers covered by individual policies purchased through the Affordable Care Act, and their data failed to transfer accurately causing problems in January when the policies went into effect.

“This is a very live issue,” said Insurance Commissioner Wayne Goodwin. “The fact that we’re still getting the number of calls we are indicates that it’s not over.”

Blue Cross has repeatedly apologized for the debacle, assuring customers the company is “working diligently” to resolve the issues alongside the Insurance Department.

In light of the situation, it has even opted for a one-year delay in transferring another 685,000 customers to the North Carolina State Health Plan, a software system administered by Blue Cross. The software program, Facets, cost Blue Cross an estimated $750 million.

By postponing that transition, the carrier hopes to avert further issues.

“There is a potential operational risk with any platform transition,” said brad Young, a spokesman for the North Carolina State Treasurer. “This delay provides ample time to work with the Plan’s various vendors to ensure a smooth transition.”
 

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