UnitedHealthcare agrees to pay a fine, change claims processes and make restitution

Posted September 11, 2007

UnitedHealthcare (UHC) has agreed with 37 insurance commissioners to pay an up-front fine of $13 million, to make changes to claims processing platforms to assure compliance with laws and regulations, and to make restitution through reprocessing of erroneous claims.

Iowa's Insurance Commissioner Susan Voss played a lead role in this first of its kind settlement, along with commissioners from Arkansas, Connecticut, Florida and New York.

UHC is subject to a total of $20 million in up-front fines if all states join the settlement and as well as fines of up to another $20 million if UHC fails to comply with settlement terms.

Read an IMS-prepared summary of the settlement. To read the settlement agreement, go to the Iowa Insurance Division's Web site at http://www.iid.state.ia.us.