UnitedHealth Insurance Companies Ordered to Pay $165 Million

Three insurance companies owned by UnitedHealth Group, including HealthMarkets Inc. and its subsidiaries, have been ordered to pay a total of $165 million for deceptive practices in Massachusetts. This ruling by Suffolk County Superior Court, described as the largest civil penalty under the Massachusetts Consumer Protection Act, includes over $50 million in restitution to consumers and $115 million in civil penalties. The companies were found guilty of misleading consumers into buying unnecessary supplemental health insurance through deceptive bundling and false representation of agents as impartial advisors. Attorney General Andrea Campbell emphasized that the companies preyed on financially vulnerable individuals. Despite the ruling, UnitedHealth plans to appeal, arguing that the decision is unsupported by evidence. The penalties, although substantial, fell short of the $368 million initially sought by the Attorney General's office.