UnitedHealth in $350 million reimbursement settlement
From John Curry, January 15, 2009
NEW YORK, Jan 15 (Reuters) - UnitedHealth Group Inc (UNH.N: Quote, Profile, Research, Stock Buzz) will pay $350 million to resolve class action lawsuits over reimbursement for its out-of-network medical services, the health insurer said on Thursday.
The settlement resolves litigation filed on behalf of the American Medical Association, health plan members, health care providers and state medical societies.
The settlement comes two days after UnitedHealth struck an agreement with the New York state attorney general following a probe into the independence of its database used to set reimbursement rates for patients' medical bills.
The $350 million will fund the settlement for health plan members and out-of-network providers in connection with procedures performed since 1994. UnitedHealth will be released from claims relating to its out-of-network reimbursement policies dating back to 1994.
The settlement is subject to court approval. UnitedHealth, the largest U.S. health insurer by market value, said it would pay for this settlement with cash on hand, with the accrual included in its results for the fourth quarter of 2008.
Combined with the agreement with the New York attorney general, UnitedHealth said it believes it has resolved issues related to its physician charge databases. (Reporting by Lewis Krauskopf; Editing by Lisa Von Ahn)
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posted by Kathie Bracy at 7:50 PM
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