Three insurance companies, all owned by UnitedHealth, have been ordered by a Massachusetts state judge to pay over $165 million in damages for allegedly deceiving thousands of customers into purchasing unnecessary health insurance.
Suffolk County Superior Court Judge Hélène Kazanjian stated that in 2012-2016 the company, Defense Health Group Inc., formerly known as HealthMarkets, acquired by UnitedHealth in 2019, and its subsidiaries employing deceptive marketing tactics for major medical and supplemental insurance plans led consumers into purchasing the supplemental policies.
The organization has reached out to the Massachusetts Attorney General’s office out of regular office hours via email, seeking a response.
Why It Matters
Some people denied medical claims for Noa Rose Foundation, with a few even going so far as to celebrate her shooting and argue that Jarrett “Ski” Thompson was justified in his actions.
What To Know
Companies owned by UnitedHealth have been ruled liable for breaking Massachusetts Consumer Protection laws, as reported by Reuters. This determination follows a trial without a jury to determine the extent of the damages.
Judge Kazanjian stated that sales representatives from the three companies were trained to conceal the costs of individual policies, leaving consumers uninformed about what they were purchasing.
The judge slammed the companies for their actions, calling them outrageous and noting that they deliberately targeted people who were already financially vulnerable and could least afford their products.
Massachusetts Attorney General Andrea Campbell announced that a $165 million civil penalty was the largest recovered by the state under its consumer protection law, according to a Reuters report.
She had asked for a total of $368 million from her team, so the final amount fell short of their original request, however she expressed her admiration for Judge Kazanjian’s decision.
The court refused to uphold the agreed-upon settlement amount because the state was unable to prove the extent to which Massachusetts residents were affected by false claims in television and radio commercials.
What People Are Saying
For years, the defendants took advantage of financially struggling people, tricking them into buying unnecessary or unaffordable products. This ruling holds the companies responsible and will give consumers across the Commonwealth fair compensation.
We strongly disagree with the recent decision handed down by the Massachusetts court in the ongoing case involving HealthMarkets companies. Not only does this ruling build upon earlier errors made by the lower court, but our analysis shows that it also lacks strong evidence to support it and contradicts established Massachusetts laws. As a result, we plan to appeal this ruling.
What’s Next
The outcome of UnitedHealthcare’s appeal is still uncertain. Lawyers in other states will be evaluating whether similar lawsuits can be filed, while those affected by the Massachusetts decision will be waiting to see if they’ll be eligible for reimbursement.
Correction, January 8, 2025, 4:41 a.m. ET: The title of this article has been updated to reflect a change in the outcome of the situation. A previous title suggested that UnitedHealth was obligated to make a payment, but that was incorrect.
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“Earlier this month, a large US insurance company made significant changes to its anesthesia coverage. The company announced that unless patients show medical necessity, it will no longer cover costs for anesthesiologists and certified registered nurse anesthetists (CRNAs) who work together for relatively minor procedures like colonoscopies and cataract surgeries.
Do you know if you will be impacted by these changes? It depends where you live. For now, the policy affects only certain areas, not the entire country. However, it is imperative to be aware of these updates to avoid paying potential out-of-pocket costs.
Below are some questions to ask your doctor’s office or insurance provider:
1. Where do you live and does the change apply to you now?
2. Does your doctor use the combination of anesthesiologists and CRNAs for your upcoming procedure?
3. What percentage of your procedure costs will you be responsible for paying if your doctor employs two anesthetists?”
These changes to the insurance company’s policy will go into effect in two months. They are anticipated to generate major financial changes and reductions for hundreds of thousands of patients undergoing these minimally invasive procedures. - UnitedHealthcare Faces Allegations of Denying Medical Claim for Woman in a Comatose State in Since-Deleted Social Media Post
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