Corrupt Ingenix database used by insurers nationwide
June 25th, 2009 joshua
The Senate Commerce Committee has determined that health insurers nationwide were basing their out-of-network costs on the flawed and corrupted Ingenix database created by UnitedHealth Group.
UnitedHealth faces legal action from New York State Attorney General Andrew Cuomo, who believes the Ingenix system is over-charging customers for such services. The fact that it served as the template for other insurance companies to determine their out-of-network costs means that people nationwide were likely paying too much for health care.
UnitedHealth Group agreed to stop using two databases within Ingenix as part of a deal reached with Cuomo.
By using this flawed and corrupted system, insurance companies did not have to pay out nearly as much as they normally would have for out-of-network care. This leaves the patient left with a larger-than-expected medical bill.
Cuomo wants the Ingenix system abolished completely and expects UnitedHealth and other insurers to contribute to a fund that would establish a non-profit database which could be used in the future to determine these costs.
