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.

Advertisement

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.

Advertisement

Next Up in Uncategorized

Advertisement

Comments are closed.