More medical groups sue over use of Ingenix
We reported a few weeks ago that New York Attorney General Andrew Cuomo had secured a settlement under which insurers would have to compensate insureds who had been underpaid after seeking "out of network" treatment. The settlement was based on the patent conflict of interest involved in using United Health's captive Ingenix subsidiary to set rates for out-of-network care. Ingenix reportedly abused United Health data to unfairly and falsely compute "reasonable and customary" charges and to underpay out-of-network providers.
Now, the AMA, The Connecticut State Medical Society and several other state medical societies have also filed suit, claiming their doctors have been short-changed. The lawsuit is being pursued as a Racketeer Influenced and Corrupt Organizations claim and as a violation of ERISA rights and the Sherman Anti-Trust Act.