UnitedHealthcare and UnitedHealthcare Insurance Co. are paying $15.6 million in settlement and penalty fees after litigation and investigations by the U.S. Department of Labor and New York Attorney General.
The settlement requires UnitedHealthcare to cease alleged violations of the Employee Retirement Income Security Act, which involve placing overly restrictive treatment limitations on mental health benefits, according to a release from the U.S. Department of Labor.
"Protecting access to mental health and substance use disorder treatment is a priority for the Department of Labor and something I believe in strongly as a person in long-term recovery," Secretary of Labor Marty Walsh said. "This settlement provides compensation for many people who were denied full benefits and equitable treatment."
The litigation stemmed from a 2013 Employee Benefits Security Administration investigation finding that UnitedHealthcare allegedly overcharged participants for out-of-network mental health services and chartered utilization reviews for mental health treatment patients, resulting in service denials and in violation of the Mental Health Parity and Addiction Equity Act of 2008, according to the Department of Labor release.
UnitedHealthcare cut reimbursement rates for out-of-network mental health providers by up to 35 percent while similar reductions for medical providers were comparatively more limited, the Department of Labor alleged.