UnitedHealth Group Pays $350 Million to Settle AMA Class Action Litigation

Shortly after settling with New York Attorney General Andrew Cuomo, the nation’s second largest health insurer, Minneapolis-based UnitedHealth Group, agreed to pay $350 million to resolve a class action lawsuit with the American Medical Association (AMA) and the Medical Society, the State of New York and the Missouri State Medical Association.

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The allegations were similar to those that United resolved with New York. In that case, Mr. Cuomo alleged that United’s wholly-owned subsidiary, Ingenix, rigged the databases that health insurers rely upon to set the “reasonable and customary” rates they charge for out-of-network physician fees. United agreed to pay $50 million to fund a not-for-profit organization to create a new, independent health information billing database.

In a news release, United said the company and its affiliate entities will pay $350 million to health plan members and out-of-network providers who were allegedly shortchanged by Ingenix’s databases for claims dating to 1994. United settled without admitting wrongdoing.

Read an AMA news release about the UnitedHealth Group settlement.

Read a UnitedHealth Group news release about settling the out-of-network reimbursement lawsuit.

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