“UnitedHealth Sued Over Controversial Health Plan Billing,” Bloomberg Law
UnitedHealth plan participants may have received surprise medical bills as a result of the company's billing practices.
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UnitedHealth Group Inc. was sued Tuesday by two health plan participants who say the insurer’s practice of moving money among the thousands of health plans it administers qualifies as unlawful self-dealing in violation of federal benefits law, according to a proposed class action filed in the District of Minnesota.
The lawsuit, filed by AT&T employee Rick Scott, challenges United’s alleged practice of “cross-plan offsetting,” a billing practice aimed at recouping overpayments that has spurred several legal challenges. Scott says the practice violates the Employee Retirement Income Security Act because it causes ERISA plan assets to be used for purposes other than providing benefits or defraying reasonable administrative expenses.
“United treats the thousands of Plans it administers as one extremely large piggybank, moving more than $1.2 billion among its Plans each year to suit its own interests,” Scott alleges. “Each cross-plan offset violates ERISA, and in most cases, the money ends up in United’s own pocket.”
Read the complete article: Bloomberg Law.
Read about the case: Scott, et al. v. UnitedHealth Group, Inc., et al.
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