UnitedHealth Group has agreed to a $1 million fine in New York for failing to comply with state law requiring coverage of all FDA-approved contraceptives, following an investigation triggered by a patient complaint, amidst ongoing cybersecurity concerns after a ransomware attack on its Change Healthcare unit.
UnitedHealth Fined $1 Million in New York Over Birth Control Coverage Violations
According to the article by Benzinga, UnitedHealth Group has agreed to pay a $1 million fine in New York for not covering all types of FDA-approved birth control methods as required by state law. This came after a patient in Brooklyn complained that their prescribed oral contraceptive was denied by the insurer. New York’s law, which is stricter than federal rules, mandates that insurers cover contraceptives without making patients pay extra fees or facing restrictions.
As part of the settlement, UnitedHealthcare of New York must refund people who were wrongly denied coverage. Those eligible will receive payments by mail, and individuals who paid for contraceptives out-of-pocket can file claims to get their money back with 12% interest. UnitedHealthcare acknowledged delays in providing access to a specific type of oral contraceptive and is working to resolve these issues for affected members.
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UnitedHealth Faces Data Breach Fallout Amid Cyberattack Concerns
After a ransomware attack on UnitedHealth’s Change Healthcare unit earlier this year, exposing private data, the company will notify affected individuals and provide free credit monitoring for two years. Concurrently, Medicare support programs affected by the cyberattack on Change Healthcare are being phased out by the Centers for Medicare and Medicaid Services.