Health Net will stop using Ingenix database

Following the lead of other insurers, including Cigna, UnitedHealth and Aetna, Health Net has agreed to stop using an Ingenix database commonly used by health plans to set out-of-network reimbursement rates for physicians. 

As part of the settlement with New York Attorney General Andrew Cuomo, who dragged the other insurers into similar agreements, Health Net will contribute $1.6 million toward a new, independent database of out-of-network rates. A total of twelve insurers have agreed to new rules established by Cuomo.

In so doing, Health Net is actually getting away cheaply. Aetna, for example, was assessed a $5.1 million fine to settle charges that it had systematically underpaid physicians; it also paid in $20 million to establish the non-profit organization that will run the new database. UnitedHealth has agreed to pay in $50 million toward the database.

To learn more about the settlement:
- read this Modern Healthcare piece


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