The suit, filed by the Medical Society of the State of New York, claims UnitedHealthcare terminated the physicians’ contracts to offset reduced federal payments under the Patient Protection and Affordable Care Act. The terminations became effective Jan. 1.
The suit claims the cuts come both at the expense of physicians and patients. The Medical Society says the terminated physicians were not given sufficient notice and will now face lower reimbursements, according to the New York Post. Many New York Medicare beneficiaries will also have to find a new physician or incur increased costs for continuing to see a physician who is now out-of-network.
UnitedHealthcare defended the cuts to the New York Post. “The changes we are making to our network will encourage higher quality and more affordable Medicare coverage,” company officials said. “We will remain focused on serving our members and will continue to provide them a broad and comprehensive choice of doctors in New York.”
This is not the first suit UnitedHealthcare has faced over contract terminations recently. In November, two Connecticut medical associations filed suit against the insurance giant for removing 2,250 physicians from Medicare Advantage networks in the state.
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