Excellus Health Plans Inc., which is based in Rochester, is accused of wrongly denying customers contraception coverage.
According to the Department of Financial Services, Excellus denied 1,000 claims for contraceptive coverage between 2008 and 2013 due to internal system and process errors.
Excellus is also accused of failing to promptly pay claims and failing to resolve consumer grievances within time frame required by law.
The company is facing a $1 million fine for these alleged violations.
Excellus says it has since made significant improvements. It released a statement saying:
“The key findings in the report relate to items from a few years ago. Those issues were addressed when we completed a major transformation project which consolidated several computer platforms down to one. The changes we made have brought about significant improvements to our claims payment system.”