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N.Y. alleges fraud in healthcare billing

NEW YORK, Feb. 13 (UPI) -- New York Attorney General Andrew Cuomo said Wednesday he is investigating health insurance companies for possible billing irregularities.

Cuomo told reporters at a news conference his office was looking into whether companies were systematically defrauding patients by manipulating the fees they pay when using doctors or hospitals outside their insurer's networks, The New York Times reported. Cuomo also announced plans to file suit against UnitedHealth Group, a major U.S. health insurer.

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The company issued a statement saying it had done nothing wrong and was cooperating with the investigation.

Cuomo said the billing practice had been going on for more than 10 years and may have cost consumers hundreds of millions of dollars.

The investigation focuses on the methods the insurance industry uses to determine how much a patient must pay for medical care by a provider not under contract to an insurer.

Cuomo said he has notified UnitedHealth Group of the lawsuit. He also said he would sue Ingenix, a company owned by UnitedHealth Group that provides data to the insurance industry for calculating patient fees.

Cuomo has issued subpoenas to Aetna, Cigna, Empire BlueCross BlueShield and about a dozen other insurance companies doing business in New York state.

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