Health Insurer to Issue Refunds After Billing Error

BREMERTON, 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.