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DOL Opposes UnitedHealth’s Cross-Plan Offsetting Practice

Sept. 7, 2017, 11:02 AM

UnitedHealth Group Inc.'s way of reimbursing medical providers violates federal employee benefits law, the Labor Department told a federal appeals court (Louis J. Peterson, D.C. v. UnitedHealth Grp., Inc., 8th Cir., No. 17-1744, amicus brief filed 9/5/17).

The Labor Department opposes a health insurance practice called “cross-plan offsetting,” in which insurers like UnitedHealth reduce payments owed to medical providers for services rendered to specific patients. The reductions are meant to offset overpayments the providers previously received on account of different patients who participate in other plans insured by the same company. This practice violates the Employee Retirement Income ...