UnitedHealth Hit With Class Action Alleging Underpaid Benefits

UnitedHealth Group Inc. systematically underpays benefits for out-of-network health care, causing plan members to pay medical costs their plans should have covered, according to a proposed class action filed Wednesday.

Alexandra Popovchak and Oscar Gonzalez, beneficiaries of self-funded health benefit plans with Morgan Stanley and Fresenius, respectively, say in their lawsuit that UnitedHealth is shortchanging plan members to boost its own profits. United is accused of violating the terms of the plaintiffs’ plans and the Employee Retirement Income Security Act.

The complaint, filed in the US District Court for the Southern District of New York, says many self-funded health plans ...