JACKSONVILLE, Fla. – Thousands of Florida Blue members woke up to shocking news Monday morning when they learned a payment processing glitch had caused their accounts to be debited by hundreds, in some cases thousands of dollars.
Lisa Moore told News4Jax her $400-a-month Florida Blue premium had been processed more than 100 times, putting her bank account over $40,000 in the red.
“I’m just easing into my first day of vacation and I get a text alert from my bank that my bank (account) is overdrawn by $41,000-plus. That was before 9 this morning,” Moore said. “I got onto my bank account to see what was up, and Blue Cross had charged my $400-a-month premium over 100 times and that accounted for that amount of money.”
Karen Hall said she normally pays between $200-250 per month, but her recent bank statement showed 83 transactions from Florida Blue pulling that amount.
"Me and my husband went to go to the ATM to get some money out, to discover we didn't have any money. We were $18,894 in the negative. So then we checked out savings and it was zero balance," Hall said. "(It was a) very frustrating day for me and my husband."
Other customers' payments were processed anywhere from 28 to over 80 times.
Florida Blue admitted the women weren't alone. The insurer said about 9,500 of its customers had their May premium payments withdrawn multiple times.
In a statement released Monday, Florida Blue said one of its vendors had a processing issue over the weekend with members' May payments.
“We are very sorry for the problems this is causing our members,” the statement said. “We are addressing the situation as quickly as possible.”
Florida Blue initiated charge reversals for all affected members within 24 hours of becoming aware of the issue.
"We expect those refunds should be completed by most banks within the next few days; in some instances, it may take slightly longer," the company said in a statement.
Blue addressed also said that it has stopped taking electronic transfer payments and is delaying further automatic payments for the month until the issue is corrected.
Moore said she was concerned about trying to initiate a stop payment on the Florida Blue premium because they could cancel her account if she doesn't pay it on time.
“Since members currently will not be able to make payments, we will not cancel a policy for nonpayment until the issue is resolved,” the statement said. “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.”
The statement said Florida Blue is also “working to identify all overpayments proactively and refund them promptly. We will ensure that only the appropriate amount is deducted and excess deductions are refunded. In fact, we have already begun processing refunds for some customers.”
"I spent two hours on hold today to finally reach a representative," Hill said. "They didn't really have a time frame ... the time when the problem (would) be corrected and we would receive our money back.”
Florida Blue will also reimburse members for any bank fees incurred due to overdrafts caused by this issue and said it will work with members who have concerns about how the issue might have affected their credit.
“Just fix the problem. Like, today. This minute,” Moore said. “I need to be able to use my bank account because I am on vacation and I have stuff to do.”
A source told News4Jax that all the charges had been reversed by the end of the day Monday.
