Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

UnitedHealth Sued Over Lucrative Method for Recouping Benefits

June 27, 2022, 5:09 PM

UnitedHealth Group Inc. was sued by a proposed class of health plan participants who say the insurer’s method of recouping overpaid benefits through a lucrative practice called cross-plan offsetting violates federal law, according to a federal complaint filed in Minnesota.

Plaintiff Rebecca Smith says United uses cross-plan offsetting to improperly transfer money from the self-funded health plans it administers—those in which the employer sponsoring the plan pays for medical expenses from its own assets—to the fully insured plans for which United is on the hook for paying medical bills. This “self-interested policy” allows United to collect unreasonable fees for itself ...