UnitedHealth To Pay $50M In Reimbursement Probe

Law360, New York (January 13, 2009, 12:00 AM EST) -- UnitedHealth Group will discontinue a billing information database it owns and pay $50 million to establish an independent alternative, ending an investigation by New York Attorney General Andrew M. Cuomo, who accused the company of defrauding consumers by manipulating reimbursement rates.

Cuomo and UnitedHealth announced the agreement on Tuesday. It came nearly a year after Cuomo threatened to sue the company, claiming it had “dramatically under-reimbursed” its members for out-of-network medical expenses by using data provided the company-owned database. No suit was ever filed.

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