FOR IMMEDIATE RELEASE
REGULATORS CONCLUDE MONITORING OF PROCESS
WASHINGTON, D.C. (Jan. 18, 2013) - Members of the
National Association of Insurance Commissioners (NAIC) today announced the
successful conclusion of a settlement agreement between the states and
UnitedHealthcare. The plan represents a progressive effort by regulators
and UnitedHealthcare to prospectively address, on a multi-jurisdictional
level, regulatory concerns related to performance on behalf of consumers
and health care providers.
In 2007, the company reached a Regulatory Settlement Agreement with
insurance regulators who oversee 26 entities owned by UnitedHealthcare in
41 jurisdictions to address past practices regarding timely payment of
claims by the national health insurer. The company agreed to a plan that
emphasized compliance, collaboration, innovation and continuous improvements
that maximize performance for consumers and health care providers. The
agreement included minimum standards against which UnitedHealthcare's
performance would be measured in real time, escalating penalties for
non-attainment, the payment of restitution when appropriate, and extensive
assessment by an independent examiner. A final report concludes
UnitedHealthcare has met all metrics and compliance benchmarks set out
under the settlement agreement.
Lead regulators from Arkansas, Connecticut, Florida, Iowa, and New York
identified areas of concern that crossed jurisdictional boundaries and
monitored the benchmarks set out in the process improvement plan.
"The course of action was guided by the principles of our state-based
system of insurance regulation and was intended to foster regulatory
coordination and efficiency through a framework for overall and sustained
improvement," said Susan E. Voss, Iowa Insurance Commissioner. "We are
pleased to report a successful outcome and believe this is an important step
toward quality improvement and regulatory compliance for UnitedHealthcare."
"By employing forward-looking methods to improve UnitedHealthcare's
regulatory performance, members of the NAIC have successfully illustrated
how state-based regulation can drive performance improvement for a national
insurer," added Jim Donelon, NAIC President and Louisiana Insurance
Commissioner. "This is a clear example of how multi-jurisdictional
collaboration and innovation work to the benefit of all consumers."
to view the final report.
About the NAIC
The National Association of Insurance Commissioners (NAIC) is the U.S.
standard-setting and regulatory support organization created and governed
by the chief insurance regulators from the 50 states, the District of
Columbia and five U.S. territories. Through the NAIC, state insurance
regulators establish standards and best practices, conduct peer review, and
coordinate their regulatory oversight. NAIC staff supports these efforts
and represents the collective views of state regulators domestically and
internationally. NAIC members, together with the central resources of the
NAIC, form the national system of state-based insurance regulation in the
U.S. For more information, visit www.naic.org.