Insurance companies fined for delaying payment

January 5, 2006

United Healthcare Insurance Co., and sister companies United Healthcare of Georgia Inc., and Golden Rule Insurance Co., have been fined $2.8 million for delaying payment on 75,000 to 80,000 health claims.

United Healthcare Insurance Co., and sister companies United Healthcare of Georgia Inc., and Golden Rule Insurance Co., have been fined $2.8 million for delaying payment on 75,000 to 80,000 health claims.

"Paying health claims on time is not only good business, it's the law in Georgia," said Georgia Insurance Commissioner John W. Oxendine. "Endless foot-dragging by companies is why we have a prompt-pay law on the books. I will aggressively pursue those who do not comply with that law."

The fine total includes $2.3 million upfront and an additional $500,000, which is suspended during a year-long probation period, according to Oxendine. The companies are also required to make changes to their claims payment practices.