UnitedHealth Group settles class-action lawsuits

MINNEAPOLIS – UnitedHealth Group (NYSE:UNH) last week said it has made a deal to settle class-action lawsuits about its out-of-network reimbursement policies that had been filed on behalf of the American Medical Association, health plan members, health care providers and state medical societies.
Under the terms of the proposed nationwide settlement, United and its affiliated entities will pay a total of $350 million to pay health plan members and out-of-network providers, and in exchange be released from claims covering the period from March 15, 1994, to the present.
The agreement contains no admission of wrongdoing, but United said it believes “it is in the best interests of the company to resolve these matters and move forward.”
Earlier last week, United had announced a separate, prospective agreement with New York Attorney General Andrew Cuomo also involving doctors’ objections to its out-of-network reimbursement policies. “We are pleased to have reached an agreement that provides closure on these matters,” said General Counsel Mitchell Zamoff in a news release.
Announced earlier this week, the agreement resolves the issues that have been raised by the AMA and the New York Attorney General concerning the company’s two physician charge databases.
The company said it will pay for the new settlement with cash on hand, and the accrual will be included in financial results for the fourth quarter 2008. The deal is subject to court approval, and the company has the right to terminate the settlement under certain circumstances, such as if a certain number of class members elect to opt out of the settlement.
An independent administrator will be selected prior to court approval of the settlement agreement, and class members can expect to be notified by mail or publication by that independent administrator, the company said.
UnitedHealth Group, the parent company of UnitedHealthcare of New England, is a diversified health and well-being company based in Minneapolis, Minn., serving more than 70 million individuals nationwide. For more information, visit www.unitedhealthgroup.com.