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UnitedHealthcare Fined For "Misleading" Letters

07-29-2008  Article by:

UnitedHealthcare of Ohio will have to pay because of letters they sent out during negotiations with OhioHealth.

The letters, which were sent out to patients who had used OhioHealth facilities in the past, were received in May and stated that subscribers to the insurance would have to find new providers as of June 10th or pay increased out-of-network costs.

A new deal was signed between the two on July 28th, seven hours before the old deal was to expire.

The superintendent of the Ohio Department of Insurance called the letters “…confusing to the recipients, caused unnecessary stress and disruption to the subscribers, members, and providers involved and were misleading.”

Because of the letters, UnitedHealthcare of Ohio will have to pay a $150,000 civil penalty and $100,000 in administrative costs.

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