Calif. Brings $1.6B Suit Against UnitedHealth

Law360, New York (January 29, 2008, 12:00 AM EST) -- The state of California has brought an action against UnitedHealth Group Inc. unit PacifiCare, saying the company mishandled 130,000 claims and may need to pay the state more than $1.6 billion in fines to make good.

The California Department of Insurance and Department of Managed Health Care said Tuesday that the action was brought in response to hundreds of consumer and provider complaints about payment problems by PacifiCare, especially after it was acquired by UnitedHealth in late 2005.

The two departments alleged that the company had...
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