Excellus BlueCross BlueShield has refunded millions of dollars to customers who were wrongly denied claims under a settlement with New York State regulators.

The deal with Excellus was announced Wednesday by Attorney General Eric Schneiderman.

Refunds were to be made to Excellus customers who overpaid healthcare providers because of the company's improper tracking of deductibles.

According to the attorney general's office, Excellus has paid about $3.1 million to customers and providers.

Excellus is said to have blamed the problems with improperly denied claims on a computer glitch after changes were made to software.

State officials say about 12,000 customers were affected by the errors.

Excellus has assured the state that the claims system has been repaired.

Excellus BlueCross BlueShield is headquartered in Rochester. The company reports it provides health insurance to more than 1.8 million members.