Federal Court Grants Preliminary Approval of Historic $350 Million Settlement with UnitedHealth Group

The AMA announced Thursday that the US District Court for the Southern District of New York has granted preliminary approval of the previously disclosed $350 million settlement that would resolve a class-action lawsuit against UnitedHealth Group. The action brought by the AMA, Missouri State Medical Association and New York State Medical Society, along with several other plaintiffs, alleged that UnitedHealth Group colluded with others to underpay physicians for out-of-network medical services. Originally filed in March 2000, the suit sought relief for physicians who were seriously harmed by the insurer’s long-term use of the flawed database operated by Ingenix, a unit of UnitedHealth Group. A yearlong investigation in 2008 by the New York Attorney General confirmed that the Ingenix database is intentionally rigged to allow insurers to shortchange reimbursements. The settlement is closely linked to a separate agreement between UnitedHealth Group and the New York Attorney General that creates a transparent replacement for the Ingenix database and trusts its operation to FAIR Health, a research network led by Syracuse University. As required by the court’s preliminary approval order, a formal notice of settlement will be publicized and circulated to class members providing detailed terms of the proposed settlement, including important dates and information related to filing claims for reimbursement from the $350 million settlement fund.

Read the  Pomerantz Haudek Grossman & Gross LLP Press Release

Review the AMA’s Press Release on the UHG Preliminary Settlement

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1 Comment

  • Clark Hanmer

    I understand income of the CEO of United last year was TWICE this amount ($756 million).

    So, they cut his pay for 6 months…
    why isn’t he in jail???