Health Net agreed to stop using an Ingenix database to set out-of-network physician reimbursement rates, and it will contribute $1.6 million toward a new independent database, becoming the final health insurer to agree to such a settlement with the New York attorney general.
Twelve health insurers in total have agreed to the reforms set by New York Attorney General Andrew Cuomo and supported by the American Medical Association. The New York Insurance Department also issued a new regulation codifying practices of out-of-network provider rate-setting, as established by the settlement agreements.
With Health Net signing on today, we have reached our goal of covering every single insured New Yorker with our reform efforts, Cuomo said in a written statement. Woodland Hills, Calif.-based Health Net said in a written statement that it supports Cuomo's reform efforts and the new database. Health Net has about 200,000 members in the state of New York.