Posted February 28, 2008
New York Attorney General Andrew Cuomo has launched an industry-wide investigation into schemes used by health insurers that defraud consumers by manipulating reimbursement rates. Cuomo's allegations regarding the flawed databases used to make UCR determinations parallel allegations made by the AMA and others in a lawsuit pending in a federal district court in New York. Ingenix, a subsidiary of UnitedHealth Group and the nation's largest provider of healthcare billing information, is at the core of the reimbursement scheme.
Cuomo's investigation found that Ingenix operates a “defective and manipulated” database that most major health insurers use to establish reimbursement rates. Additionally, the investigation disclosed that two subsidiaries of United dramatically under-reimbursed their members for out-of-network medical expenses by using data provided by Ingenix. Cuomo stated he issued 16 subpoenas to the nation's largest health insurers including Aetna and Empire Blue Cross Blue Shield, and that he intends to file suit against Ingenix and United.
Click here to read the AMA Statement on this investigation.
For more information please visit the following websites:
http://www.oag.state.ny.us/press/2008/feb/feb13a_08.html
http://www.ama-assn.org/ama/pub/category/18316.html
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