Court Ruling In California’s Case Against UnitedHealth Could Pave The Way To $91M Fine
"UnitedHealthcare purchased PacifiCare and imposed cost-cutting measures that destroyed PacifiCare's claims-handling processes," said Dave Jones, the insurance commissioner in California. He added: "By any measure, 908,000 violations reflect a general business practice of violating consumer protection laws."
The Star Tribune:
Court Rules Against UnitedHealth Group On California Fines
A California appeals court has ruled in favor of state regulators in their attempt to impose fines on a subsidiary of Minnetonka-based UnitedHealth Group related to more than 900,000 alleged violations of a California law on insurance claims. Dave Jones, the insurance commissioner in California, issued a statement Friday saying the court ruling this week paves the way for another court to affirm some $91 million in fines against PacifiCare, an insurance company that UnitedHealth Group acquired more than a decade ago. The deal substantially expanded the company's UnitedHealthcare health insurance business, which is now the nation's largest carrier. (Snowbeck, 9/21)