UnitedHealth’s Ingenix faces mounting legal troubles

Now, a consumer is raising the stakes a bit by attempting to get class action status for a suit against Ingenix itself. In the suit, which was filed in Connecticut, plaintiff Jeffrey Weintraub contends that he was defrauded by a conspiracy in which health plans calculate lowball, out-of-network rates using bogus Ingenix data. Weintraub also names UHG, Oxford health Plans, Aetna, Cigna and other insurers in the suit.  Read more 

Rising Hegemon has an excellent post contrasting how ordinary Americans are getting hammered by rising medical costs while health insurance companies rack up the profits.

UnitedHealth CEO paid $13.1M in 2007

UnitedHealth Group Inc. CEO Stephen Hemsley received compensation valued at $13.1 million in 2007, down from the $15.5 million he got in 2006.

According to documents filed with the SEC, Hemsley received a base salary of $1.3 million in 2007, up from $1 million in 2006. He also got stock options awards valued at $8.1 million in 2007, less than the $11.3 million he got in 2006.

His compensation also included $3.6 million in cash incentives, up from $2.8 in the previous year.  Read more 

Maryland balks at pay package for former CareFirst CEO

The Maryland Insurance Administration argued Monday that the nearly $18 million CareFirst BlueCross BlueShield is prepared to pay William Jews, its former top executive, is too much.

Attorneys with the state agency said the MIA wants to cut the annual and long-term incentives CareFirst, the region’s largest health insurer, plans to pay Jews, who left the nonprofit in November 2006. The insurance administration also argued that the primary focus of a nonprofit is not to generate profits or encourage its top managers with incentives to increase profits.  Read more 

Profit! It’s All American. Investors, here is your next growth industry:

“Americans are using high-interest credit cards to pay for what should be a necessity,” said report co-author Mark Rukavina. “The health care safety net is made of plastic.”

Bank of America and JP Morgan Chase, both of which have credit card operations in Delaware, wouldn’t comment on the report.

Americans are resorting to credit cards because health care costs are increasing faster than incomes, the report said.

“Over the past six years, health insurance premiums have increased by 73.8 percent while median income has grown by only 11.6 percent. A family health insurance policy is now equivalent to 18 percent of median family income, up from 8 percent in 1987.”  Read more