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Legal News

: Legal Pad | LA

Underpayment of out-of-network rates at issue in L.A. suit

By Richard Binder

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The Downey Surgical Clinic and Tarzana Surgery Center are leading a class action lawsuit in Los Angeles federal court, claiming that United HealthGroup has routinely underpaid for out-of-network care.  These underpayments frequently shifted costs to patients.

The suit alleges that that United used in-network rates and an arbitrary multiplier to calculate rates for out-of-network claims and not through geographical comparisons and its own Ingenix database, as it had originally reported.

Attorneys say this violates California business codes as well as federal health benefits and anti-corruption laws.

Click these for details.

Full post as published by Legal Pad | LA on May 12, 2010 (boomark / email).

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