NEWARK, N.J. (AP) — New Jersey’s largest health insurer will make restitution and has paid a $500,000 penalty over the way it handled some Medicare claims.

The action comes after the state Banking and Insurance Department investigated how Horizon Blue Cross and Blue Shield of New Jersey processed claims for Medicare customers insured through small businesses that use Horizon as a secondary insurer.

The Record newspaper reports the state would not disclose the findings of the investigation because it contained financial information.

Horizon says it has corrected, or is in the process of correcting, the problems.

Horizon says if it owes $50 or more on a claim, it will pay that plus 12 percent interest to the provider or patient. It will pay the state for lesser amounts.

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(Copyright 2011 by The Associated Press.  All Rights Reserved.)

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