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Health insurer to issue refunds after billing error


April 24, 2012

OLYMPIA, Wash. - KPS Health Plans, a Bremerton-based health insurer, has

agreed to refund thousands of dollars to customers who were overcharged

due to a billing system error.

Approximately 235 customers are believed to have been billed at

incorrect rates. Of those, 61 had the incorrect amount deducted from

their bank accounts. Others received incorrect billing statements.

Insurance Commissioner Mike Kreidler has requested the company issue

refunds and notify customers about the problem. KPS has said it will

issue refunds right away with letters of apology to customers.

The company has agreed to pay for any insufficient funds charges

incurred by customers as a result of these overcharges. KPS will also

post on its website a notice to customers about the problem.

Starting in mid-April, Kreidler's office began receiving complaints from

consumers about the overbilling, including one customer who said it

amounted to about $100 extra.

"I'm disappointed that we had to hear about this problem first from

policyholders, rather than from the company itself," said Kreidler.

KPS customers with questions can call the company or contact Kreidler's

office at 1-800-562-6900.


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