Anthem Health Plans of Kentucky Inc.

Louisville - In November 2005, the Kentucky Office of Insurance ordered Anthem to repay $23.7 million to 81,000 policyholders for errors in Medicare supplement rates. Anthem overpaid providers for medical claims and began recouping the excess payments. The inaccurate claims payments and resulting overestimation of medical trends were used to justify increased premiums. Anthem Health Plans has agreed to pay $1.25 million in a settlement agreement with the Kentucky Office of Insurance. The settlement funds will go to 43,000 seniors and disabled individuals covered by Anthem's Medicare Select products between January 1, 2005 and December 31, 2005. (Sep-29-06) [LOUISVILLE BUSINESS JOURNAL: ANTHEM POLICYHOLDERS]

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