Health Insurance Provider Will Shelve Credit Card 'Convenience' Fee

Health Insurance Provider Will Shelve Credit Card 'Convenience' Fee

After receiving scrutiny from California officials, one of the nation's largest health insurance companies will soon eliminate a large fee it planned to charge policyholders when they used a credit card to pay for coverage.

Anthem Blue Cross originally planned to introduce a $15 "convenience fee" on all credit card payments, but has since backed off that decision after the California attorney general's office began to question the move's legality, according to a report from the Los Angeles Times. The company is one of the largest health insurance providers in the Golden State.

Anthem originally notified members that it would do away with automatic credit card payments on August 1, and any further payments with this type of account would require policyholders to call a customer service representative each month and pay the large fee, the report said. It also informed customers of a new $2 fee for receiving paper bills in the mail.

Many companies are now in search of ways to cover the cost of rising credit card interchange fees, which may only increase due to a new federal law limiting those for debit purchases.

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