Attorney General Says NY Settlement With Insurer Significant Step; CT Investigation Ongoing

Connecticut Attorney General's Office

Press Release

Attorney General Says NY Settlement With Insurer Significant Step; CT Investigation Ongoing

January 13, 2009

"Today's settlement between New York and UnitedHealth Group -- eventually establishing a new reimbursement rate system -- is a significant step toward protecting patients who may have been shortchanged millions of dollars over several years by insurers.

"My investigation into UnitedHealth Group, its Ingenix subsidiary and several other insurers is continuing to ensure that any company that may have misused or manipulated reimbursement rates is held accountable, including possible restitution for consumers.

"In a check-and-balance vacuum, Ingenix declared the market rate for medical procedures, but failed to ensure that data was accurate and updated. These practices enabled insurers to base reimbursement rates on outdated data that failed to reflect the rising costs of medical care. As a result of these practices, patients were forced to bear the cost of inflation and insurers abandoned their promises to pay a certain percentage of out-of-network medical costs.

"My office will continue to investigate to ensure that patients are protected."