9,480 Florida Blue customers experienced payment glitch, company says

May 04--Florida Blue has reported to state insurance regulators that 9,480 customers experienced multiple withdrawals from their bank accounts for a premium payment, a glitch that's being blamed on a third-party vendor.

The 9,480 customers affected by the payment processing glitch should now be seeing the money returned to their bank accounts, Florida Blue spokeswoman Christie DeNave said.

"Most people already are seeing credits applied to their accounts," she said. "It depends on their financial institute and how long it will take."

The Jacksonville-based insurer that covers 5 million Floridians reported to the Florida Office of Insurance Regulation how many customers were affected since learning of the processing error for May premium payments.

"That is the final number," DeNave said, referring to how many customers were affected.

The processing error came to light Monday with the third-party vendor and reported it to the state insurance office.

DeNave did not have any breakdown of how many people were affected in each region of the state, or if it was concentrated in one or more areas.

Florida Blue is not identifying the third-party vendor responsible for the error, and she would not discuss if the company is acting on the contract with the vendor, she said.

The processing glitch is an issue that has gone to the upper levels of Florida Blue leaders to address, she said.

For customers who faced overdraft charges due to multiple withdrawals, the company is working with banks to get overdraft charges reversed.

In addition, Florida Blue has stopped taking electronic payments for premiums for the time being and delayed ongoing automatic payments that are scheduled for this month until the company understands the issue and ensures the problem is corrected.

DeNave said Florida Blue is not taking action for nonpayments, but she could not say how long that would last.

"We are extending the grace period," she said. "I think we are still assessing that to determine how long."

Customers can continue receiving medical care, and no policy cancellations are being issued.

"We are doing everything we can to make them whole," she said.

In its formal statement to customers, Florida Blue stated: "Since members currently will not be able to make payments, we will not cancel a policy for nonpayment until the issue is resolved. During this time, we will ensure that people who need care are able to get it, even if they are unable to make premium payments as a result of this issue."

Customers with questions can direct their inquiries to Florida Blue at [email protected] or call the Florida Department of Financial Services at [email protected] or call the statewide toll free helpline at 877-693-5236.

___

(c)2017 the Naples Daily News (Naples, Fla.)

Visit the Naples Daily News (Naples, Fla.) at www.naplesnews.com

Distributed by Tribune Content Agency, LLC.