Commissioner McCarty Joins With Other States In A Settlement With United Healthcare Worth Millions
- Florida Insurance Commissioner Kevin McCarty today announced a multi-state settlement agreement
with United Healthcare Insurance Company and affiliates following a multi-year review of company practices. The initial amount of the settlement could be up to $20 million. Florida's initial share of the settlement is estimated to be $2.6 million.
McCarty worked with chief insurance regulators from Arkansas, Connecticut, Iowa and New York to develop a process improvement plan for United Healthcare that has been enacted in all participating states.
Stemming from reported complaint data, market analysis and market conduct examination findings reported in 2004, regulatory officials joined together to conduct a multi-state analysis of the company. The analysis identified certain areas of concern involving claims handling and other insurance administrative practices.
"It is necessary for companies to understand the importance of providing prompt claims processing for their policyholders," said Commissioner McCarty. "We want to promote a healthy market as regulators, but we also want companies to know we are watching out for our consumers' best interests."
United Healthcare will undergo a three-year process improvement plan in which it will submit to annual regulatory reviews. Following the review periods, United Healthcare may potentially face another $20 million penalty if the benchmarks described in the process improvement plan are not met. By entering into this agreement, United Healthcare has agreed to waive all rights to an appeal or hearing on this matter.
Top state settlement amounts are listed below: