State fines UnitedHealthcare $250,000 for consumer letter

The Ohio Department of Insurance fined UnitedHealthcare $250,000 for sending letters to thousands of its customers telling them that their health care providers would no longer be part of its network. ODI found that the letter panicked consumers prior to United's 11th-hour deal in June with OhioHealth, the largest hospital system in central Ohio (Source: “State fines insurer $250,000,” Columbus Dispatch, July 29, 2008).

ODI investigated the letters after receiving numerous complaints from consumers. The fine includes a $150,000 penalty as well as $100,000 to cover the cost of the investigation.