UnitedHealth Group announced today that it has reached an agreement to settle class action litigation related to reimbursement for out-of-network medical services. The agreement resolves class action litigation filed on behalf of the American Medical Association (AMA), health plan members, health care providers and state medical societies. The company believes that this retrospective settlement, coupled with the prospective agreement with New York Attorney General Andrew Cuomo announced earlier this week, resolves the issues that have been raised by the AMA and the New York Attorney General concerning the company’s two physician charge databases.

HOW DOES THIS AFFECT YOU AS AN EMPLOYER?
This nationwide settlement agreement resolves class action litigation filed on behalf of the AMA, health plan members, health care providers and state medical societies. UnitedHealth Group will pay a total of $350 million to fund the settlement for health plan members and out-of-network providers in connection with out-of-network procedures performed since March 15, 1994. UnitedHealth Group and its affiliated entities will be released from claims relating to its out-of-network reimbursement policies from March 15, 1994 through the date of final court approval of the settlement.

1. How will people know if they are included in the settlement class? Those people eligible for the fund will receive notice of the process for submitting claims in a form approved by the court.
   
   
2. How will the funds be distributed? Funds will be distributed by a third-party administrator according to a plan that is subject to court approval. Distribution under the terms of the agreement will not be handled through UnitedHealth Group.
   
   
3. If class members have questions about collecting settlement funds, whom can they contact? Those people eligible for the fund will receive notice of the process for submitting claims in a form approved by the court. The notices will provide contact information for the claims administrator, which will be able to answer questions upon request. UnitedHealth Group will not be administering this process.
   
   
4. How will UnitedHealth Group pay for this settlement? Will it have a material impact on earnings? The company will pay for this settlement with cash on hand, and the payment will be included in financial results for the Fourth Quarter 2008, as part of operating costs for GAAP accounting.
   
   
5. Will this agreement have an impact on medical costs for UnitedHealth Group customers? We do not believe this settlement will have an impact on medical costs moving forward.

WHAT SHOULD I DO NEXT?
No action is required. UnitedHealth Group has been directed to contact affected persons. If you have any additional questions regarding the information within this eCommunication, please call Corporate Synergies at 1.866.CSG.1719 or click here to contact us today.