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Suit Aims to Stop Insurers From Using Health Plans as Piggy Bank

July 16, 2020, 6:00 PM

A new lawsuit seeks to stop health insurers from a decade-old practice that some attorneys say treats patients’ health plans like their own personal piggy bank.

The practice, known as cross-plan offsetting, occurs when an insurance company that considers it overpaid a doctor for a patient’s care recoups that loss by refusing to pay the same doctor in full when they care for another patient in a different health plan serviced by the same insurance company. Attorneys in litigation against UnitedHealth Group argue the practice hurts patients, providers, and employers that sponsor health plans.

It leaves doctors footing big bills...

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