UnitedHealth will pay $350M to settle AMA class-action over Ingenix data

Just days after cutting a $50 million deal with the state of New York to address similar issues, UnitedHealth Group has agreed to pay $350 million to settle a class-action suit brought against it by the American Medical Association alleging that its health plans unfairly used inaccurate pricing data to justify low out-of-network payments.

Earlier this week, the state of New York announced that UnitedHealth had agreed to pay $50 million to settle charges that physician charge data maintained by its Ingenix subsidiary was artificially low. The money will be used to create an independent non-profit that will administer a new charge database. Ingenix will use the non-profit's data and scrap its existing database.

Now, UnitedHealth has agreed to pay $350 million to settle the AMA's class-action suit, which argued that UnitedHealth's rate-setting practices violated several federal laws, including ERISA, RICO and antitrust law.

To get more background on the suit:
- read this Modern Healthcare piece (reg. req.)

Related Articles:
UnitedHealth inks $50M settlement with NY over Ingenix charges
NY sues UnitedHealth over MD payments
New York AG expands health plan investigation
UnitedHealth's Ingenix faces mounting legal troubles

Suggested Articles

The profit margins and management of Community Health Group raise questions about oversight of managed care insurers.

Financial experts are warning practices about the pitfalls of promoting medical credit cards to their patients.

A proposed rule issued by HHS on Tuesday would expand short-term coverage, a move Seema Verma said will have "virtually no impact" on ACA premiums.