NY Adds 7th Insurer to Reform Effort

New York's attorney general says a seventh health insurance company will stop using a faulty database to calculate reimbursement rates for patients who see out-of-network doctors.

Andrew Cuomo says Indianapolis-based WellPoint Inc. will end its relationship with the Ingenix database and pay $10 million to help establish an independent rate-setting database.

Cuomo says that as a subsidiary of UnitedHealth Group Inc., Ingenix had an interest in helping set rates low so companies could underpay patients for out-of-network services.

A WellPoint subsidiary, Empire BlueCross Blue Shield, is the largest health insurer in New York, with five million members.

Minnetonka, Minn.-based UnitedHealth has agreed to shut down the Ingenix database.

Copyright AP - Associated Press
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