According to the article by Benzinga, UnitedHealth Group, one of the largest healthcare insurers in the United States, has agreed to a hefty $1 million fine in New York for failing to comply with state law requiring coverage of all FDA-approved contraceptives. The fine comes as a result of an investigation triggered by a patient complaint in Brooklyn, where a prescribed oral contraceptive was denied by the insurer.
New York’s law is more stringent than federal rules, mandating that insurers cover contraceptives without additional fees or restrictions. As part of the settlement, UnitedHealthcare of New York will refund individuals who were wrongly denied coverage. Eligible individuals will receive payments by mail, and those who paid out-of-pocket for contraceptives can file claims to recover their expenses with 12% interest.
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This fine underscores the importance of compliance with state healthcare laws, especially concerning sensitive issues like reproductive health. Additionally, UnitedHealth Group is facing cybersecurity concerns following a ransomware attack on its Change Healthcare unit. This attack exposed private data, leading to the company offering free credit monitoring for two years to affected individuals. Concurrently, Medicare support programs impacted by the cyberattack are being phased out by the Centers for Medicare and Medicaid Services.
UnitedHealth Group’s response to these challenges will be closely watched, as it navigates both legal and cybersecurity issues in the healthcare sector.
