US CMS bars firm from Rx drug plan enrollments

26 January 2009

The US Centers for Medicare and Medicaid Services (CMS) has ordered the parent company of California's largest private health insurer, Anthem  Blue Cross of California, to cease enrolling new members to its Medicare  plans because of alleged withholding of drugs to members. WellPoint has  1.9 million prescription medicine beneficiaries and about 1.3 million  customers nationally with other Medicare plans - which generally offer  more comprehensive coverage, including for drugs.

According to the federal government agency, some people were prevented  from getting necessary medications and data errors led to overcharging  of some customers. WellPoint stressed that "significant progress" has  been made already to overcome the issues which were exposed by internal  auditors and CMS inspectors.

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