New York AG Targets Health Insurers Over Reimbursement Rates
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Shares of health insurers are weaker today after New York Attorney General Andrew Cuomo issued subpoenas to 16 companies related to allegations they are defrauding customers by manipulating reimbursement rates.
Cuomo is probing how-out-of-network providers are reimbursed by insurers based on "usual and customary" charges, which are said to be low and not transparent. Patients are often responsible for paying the difference to providers which get low reimbursements from the insurance companies for out-of-network services.
Cuomo is targeting UnitedHealth Group's (NYSE: UNH) Ingenix unit, which sets rates for much of the industry, and other insurers including WellPoint (NYSE: WLP), Aetna (NYSE: AET) and Cigna (NYSE: CI), among others.
Cuomo is probing how-out-of-network providers are reimbursed by insurers based on "usual and customary" charges, which are said to be low and not transparent. Patients are often responsible for paying the difference to providers which get low reimbursements from the insurance companies for out-of-network services.
Cuomo is targeting UnitedHealth Group's (NYSE: UNH) Ingenix unit, which sets rates for much of the industry, and other insurers including WellPoint (NYSE: WLP), Aetna (NYSE: AET) and Cigna (NYSE: CI), among others.
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