Suit Slams Fidelity Over Ingenix Reimbursement Fraud

Law360, New York (January 11, 2010, 4:04 PM EST) -- A Fidelity Security Life Insurance Co. policyholder has launched a putative class action accusing the health insurance provider and its administrators of engaging in an unlawful scheme with other insurers to systematically underreimburse consumers for out-of-network benefits.

In a complaint filed Friday in the U.S. District Court for the District of Nebraska, Jane McCarthy claims that Fidelity, along with plan administrator Independence Holding Co. and its subsidiary Insurers Administrative Corp., knowingly created and used flawed data maintained in the Ingenix database to set artificially low usual,...
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