Unions Obtain Historic Health Care Settlement for Members and Other United Healthcare ($350 million)

[Omaha Steve]

http://www.msnbc.msn.com/id/28676692/

NEW YORK, Jan. 15, 2009 (GLOBE NEWSWIRE) -- Four New York-based unions -- the New York State United Teachers ("NYSUT"), the Civil Service Employees Association ("CSEA"), the Organization of New York State Management/Confidential Employees ("OMCE") and the New York State Police Investigators Association ("NYSPIA") -- played a key role in the recently announced, historic $350 million settlement with United Healthcare relating to its use of databases disseminated by its wholly-owned subsidiary, Ingenix, Inc., to set reimbursement rates for out-of-network health care providers. On Tuesday, New York Attorney General Andrew Cuomo announced a settlement with United Healthcare in which a new and independent database would be established to report on usual, customary and reasonable ("UCR") rates for out-of-network services. Then today, the settlement of the class action was reported. Pursuant to that settlement, United Healthcare not only agreed to enter into the settlement with the Attorney General to assist in the establishment of the new UCR database, but also will establish the largest private health insurance settlement fund ever achieved to assist in providing reimbursement to members who were adversely affected by United Healthcare's use of the Ingenix database.

The unions, each of whom has numerous members who receive their health insurance through the United Healthcare-administered Empire Plan, intervened in the class action lawsuit in 2003, seeking relief on behalf of their members. According to D. Brian Hufford of Pomerantz Haudek Block Grossman & Gross LLP, co-lead counsel in the class action and counsel for the unions, "The unions played a key role in the litigation by sending a strong message both to the Court and to United Healthcare that they were not going to sit idly by and watch their members be injured through these improper health care practices." Adds Pomerantz partner Robert J. Axelrod, "With the creation of both a new and independent UCR database, and a substantial settlement fund, the unions clearly satisfied their goal in pursuing this significant litigation and indicated their intent to continue their watchdog role."

Plaintiffs in the pending lawsuit will shortly be filing a motion in the Southern District of New York, seeking preliminary approval of the settlement and authorizing the dissemination of a notice of the settlement to Class Members. The notice will describe to Class Members what they need to file in order to make a claim against the settlement fund.

For questions or inquires regarding the settlement, please contact Robert J. Axelrod ([e-mail]) at 888.476.6529 (or 888.4-POMLAW), toll free.

The Pomerantz Firm, which has offices in New York, Chicago, Washington, D.C., Columbus, Ohio and the San Francisco Bay area, is acknowledged as one of the premier firms in the areas of securities, insurance and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered hundreds of millions of dollars on behalf of class members.

CONTACT: Pomerantz Haudek Block Grossman & Gross LLP
Teresa L. Webb
[phone]
(888) 4.POMLAW
[e-mail]