HMO Pays Huge Settlement in Discrimination Suit

An HMO serving Medicaid patients will pay nearly a quarter-billion dollars to Illinois and others. The agreement settles claims that the company refused to insure Illinoisans who needed coverage the most.
A federal jury found that Amerigroup discriminated against pregnant women and others who would be expensive to insure. Today, Amerigroup dropped its appeal and signed off on a settlement worth $225 million.

A former company executive blew the whistle on the practice. His lawyer David Chizewer says the misconduct hurt needy people and ripped off taxpayers.

CHIZEWER: People who need care, and who are entitled to care under the government programs, aren’t getting the care they need. And number two, the insurance company is being overpaid for the care that they are providing.
Amerigroup has not admitted any wrongdoing. The company maintains that the state directed it not to enroll late-term pregnant women.

~ by Shadow Master on August 14, 2008.