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UnitedHealth Sued Over Controversial Health Plan Billing (1)

July 14, 2020, 7:10 PMUpdated: July 14, 2020, 9:16 PM

UnitedHealth Group Inc. was sued Tuesday by two health plan participants who say the insurer’s practice of moving money among the thousands of health plans it administers qualifies as unlawful self-dealing in violation of federal benefits law, according to a proposed class action filed in the District of Minnesota.

The lawsuit, filed by AT&T employee Rick Scott, challenges United’s alleged practice of “cross-plan offsetting,” a billing practice aimed at recouping overpayments that has spurred several legal challenges. Scott says the practice violates the Employee Retirement Income Security Act because it causes ERISA plan assets to be used for purposes other...

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