UnitedHealth Group sues California over fine - KMPH FOX 26 | Central San Joaquin Valley News Source

UnitedHealth Group sues California over fine

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SANTA ANA, Calif. (AP) - UnitedHealth Group has sued California's insurance commissioner to block a $173.6 million fine the insurer incurred for violations during a botched acquisition.

The Los Angeles Times reports (http://lat.ms/1qPprlw ) the lawsuit filed Thursday in Orange County Superior Court accuses Commissioner Dave Jones of setting a dangerous precedent by seeking such stiff punishment for relatively minor violations.

Insurance regulators said UnitedHealth committed more than 900,000 violations after the takeover.

UnitedHealth has acknowledged its 2005 takeover of PacifiCare didn't go as planned. The company admits numerous mistakes in processing medical claims and customer applications.

In its decision, the insurance department said its proposed fine "appropriately reflects the gravity" of the offenses.

An insurance department spokesman said Thursday the agency hadn't had time to fully review the lawsuit.

Information from: Los Angeles Times, http://www.latimes.com

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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