Corporate Compliance

UnitedHealthcare to pay $3.5 million in fraud settlement

Compliance Monitor, December 22, 2004

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UnitedHealthcare Insurance Company has agreed to pay the federal government $3.5 million to settle allegations that it defrauded the Medicare program, the Justice Department announced December 13.

The government alleges that from about 1996-2000, United Healthcare's telephone response unit knowingly mishandled certain phone inquiries received from Medicare beneficiaries and providers and then falsely reported its performance information to CMS about how it handled calls.

At the time, UnitedHealthcare had a Medicare contract to process claims for durable medical equipment in the Northeast.

"Medicare contractors, along with other healthcare providers, can and will be held accountable for their billing practices," Peter Keisler, assistant attorney general for the Justice Department's civil division, said in a press release. "This settlement demonstrates our unwavering pursuit of fraud and abuse."



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