A federal judge in Newark, N.J., has approved a previously disclosed agreement calling for insurer Health Net to pay $215 million to members to settle three class-action lawsuits alleging the company paid inadequate reimbursements for out-of-network services between 1995 and 2007.
Health Net disclosed the settlement amount in its earnings report issued Nov. 1, 2007, and recorded the charge in that years third quarter. The complaints allege that Health Net held down out-of-network payments by inappropriately basing what they paid on a flawed database of providers charges maintained by Ingenix, a UnitedHealth Group subsidiary. A similar lawsuit seeking class-action status in Connecticut targets Ingenix and several insurance companies. In February, New York Attorney General Andrew Cuomo promised an industrywide investigation of the practice but has not filed any lawsuits. -- by Gregg Blesch