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February 2007

United Healthcare fined in Washington

The Office of the Insurance Commissioner in Washington has ordered United Healthcare Insurance Co. (UHIC) of Minneapolis, Minn., to pay a $59,500 fine following an agency investigation into the company’s use of unapproved contracts to add chiropractors to its provider network. UNHIC has provider agreements with CAN Group., Inc., the chiropractic provider network.

The agency ordered the fine after an investigation disclosed the company continued to use the unapproved contracts after it had been notified that it was violating insurance regulations intended to protect consumers.

According to the consent order posted on the Washington State Chiropractic Association (WSCA) Web site, UHIC used provider agreements that allegedly contained a retroactive denial

provision, which was prohibited by law. The insurance commission reviewed the allegations and withdrew its prior approval of the provider agreements. Despite the ruling, UHIC through CAN added 33 new chiropractors to the network, using the disapproved provider agreements, until Oct. 13, 2005.

The commission’s ruling said that UHIC violated the law. The commission ordered a fine of $59,500 within 30 days.

 

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