Davis Law Group, P.S.

Endangering lives - UnitedHealth - 8th Worst Insurance Company

Earning the number eight spot on America's Top 10 Worst Insurance Companies in America according to the American Association for Justice, UnitedHealth not only endangered patients’ lives by paying incredibly low reimbursement rates and jacking up premiums on products through AARP, but their former CEO also faced criminal and civil charges for backdating stock options.

Headquarters: Minnetonka, MN

Profits: $4.7 billion

Assets: $53.5 billion

• After amassing over $1.6 billion through illegally backdating stock opinions, former CEO William McGuire gave back $620 million in stock gains and retirement compensation in order to settle federal and shareholder claims, still leaving him with $800 million in options and $530 million in compensation.
• Partnered with AARP to use their good reputation to charge higher premiums, specifically targeting senior citizens and falsely making them feel valued when they were actually paying more for a small difference in services.
• Their Medicare Advantage program was suspended in 2007 after audit reports found inadequate supervision of marketing representatives, and failure to notify policyholders about changes in costs and benefits.
• High level of complaints in Nebraska because of because of their failure to reimburse claims on time and for wrongfully denying valid claims.
• Physicians in South Carolina have stopped accepting UnitedHealth coverage because of the constant delays and the extremely low reimbursement rate is so low that it compromises the patients’ health.
• Texas has levied $4 million in fines against UnitedHealth for late payment.
• Arizona fined the company for $364,750 for illegally denying over 63,000 by doctors.
• New York Attorney General Andrew Cuomo alleges that UnitedHealth has systematically been forcing been forcing patients to pay more than they should for visits to out-of-network doctors and hospitals by intentionally low-balling reimbursement rates.