UnitedHealth To Pay $9.5M In Insurance Underpayment Row

Law360, Los Angeles (September 10, 2015, 9:03 PM EDT) -- Health insurance provider UnitedHealth Group Inc. agreed to pay $9.5 million to settle a putative class action accusing the company of underpaying claims made by out-of-network ambulatory surgery centers in California in violation of the Employee Retirement Income Security Act, according to Thursday court documents.

Named plaintiffs Downey Surgical Clinic and Tarzana Surgery Center alleged that UnitedHealth subsidiaries United Healthcare Services and OptumInsight Inc., formerly known as Ingenix, improperly calculated the reasonable amounts that should've been paid to the out-of-network ASCs, which are essentially outpatient surgery clinics, violating ERISA.

In a motion for preliminary approval of the settlement, the plaintiffs urged...

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