(Published Sept. 26, 2001)

State regulators have fined Woodland Hills-based Health Net $100,000 for late payment and denial of medical claims, the Department of Managed Health Care said Tuesday.

Under state law, HMOs must pay hospitals and physicians within 45 days of receiving medical bills. If HMOs pay late, interest accrues at a rate of 10 percent per year.

Health Net said a flaw in its computer system caused claims processing delays, and the glitch has been corrected. Health Net said it has paid the fine and paid doctors and hospitals all outstanding bills plus $54,000 in interest.

Earlier this year, Pacificare was assessed $250,000 in the state's largest late-claims fine to date, regulators said. Tuesday, the state also announced a $50,000 fine against Heritage for payment delays. Heritage will also pay health care providers $200,000 in interest for late claims, state officials said.

--Lisa Rapaport

SacBee

-- Anonymous, September 27, 2001