UnitedHealthcare, a subsidiary of UnitedHealth Group, Inc., entered into a settlement agreement last month whereby it agreed to pay $12 million to the Attorneys General of 36 states and the District of Columbia. This settlement comes after a multi-state investigation by state insurance regulators regarding UnitedHealthcare's claims practices, fee schedules and deductibles. In addition, under the settlement agreement, UnitedHealthcare could be liable for as much as $20 million in the event it does not improve its claims practices and consumer complaint handling procedure in the future.
New York, one of five states to head the investigation of UnitedHealthcare on behalf of the 31 other states, will receive the largest sum, $4 million, under the terms of the settlement agreement. Click here to read the press release from the New York State Insurance Department.