New York state regulators say HealthNow New York will pay a $1 million fine for denying insurance coverage for infertility treatments to as many as 2,500 women, among with other violations.

Regulators say the fine follows an investigation by the Insurance Department into a complaint from an Ithaca woman who challenged the denial of a $154 claim for an intrauterine insemination treatment.

Most of the improper denials involved claims of approximately $150. Under an agreement with the state, the Buffalo-based insurer will reimburse affected individuals the cost of the improperly denied claims plus interest.

Other violations included giving members only 15 days notice of rate increases instead of the 30-day notice required by law.