Archive for November, 2009

Oxendine levies huge fine for delaying health insurance payments on claims

Insurance Commissioner John Oxendine levied a $750,000 fine against United Healthcare Insurance Company and its sister companies for delaying payment on thousands of health claims.

Oxendine said the firms were slow to pay about $20 million in health care claims.

The commissioner, a Republican candidate for governor, has fined several health insurance companies over the years, including United Healthcare,  for the same offense. State law  requires insurance companies to pay claims within 15 working days of receiving them, or to notify the provider or policyholder as to why a claim can’t be paid within that time.

United and its sister companies were fined $2.8 million for delaying payments on health claims in 2005. They were fined $150,00o in 2002

Insurance companies make money off the delays because they earn income from  investing premiums.

Oxendine said of United, “We’re going to keep fighting them until they get religion. We’re here to enforce the law. We will not …

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