UnitedHealth Group will pay up to $20 million to settle with 36 states regarding the system UnitedHealth used to pay claims.
The company will also implement a “process improvement” plan with quarterly reporting required. UnitedHealth will be trying to reduce its errors in the paying of claims, speeding up the process of paying claims, and improving the process of customer complaints and appeals. If the company doesn’t improve in these areas over the next three years, it could be subject to an additional $20 million in fines.
UnitedHealth was accused of being one of the worst health insurers in terms of mishandling claims. However, the company says that its change to a more centralized system to solve national problems with paying claims actually hurt certain smaller areas. Some problems also came as a result of acquiring other companies and converting their systems to the UnitedHealth’s system.