NEW YORK – Aetna and United HealthGroup have agreed to pay millions of dollars to members who were scammed in what New York Attorney General Andrew Cuomo called a “rigged” billing system.

At the center of the investigation is a database operated by Ingenix, a company owned by United HealthGroup. Investigators say the Ingenix system provided faulty data that led to overcharging consumers millions of dollars for using out-of-network doctors.

United HealthGroup will pay $350 million, while Aetna will pay $20 million under an agreement with Cuomo.
The settlements, announced last month follow an agreement with United HealthGroup earlier in the month in which United HealthGroup agreed to pay $50 million to create a nonprofit, independent database system. The $20 million settlement with Aetna has similar stipulations.

Ingenix provided lower reimbursement figures than what the patients paid, making it possible for insurers to make smaller payments, according to investigators.

Cuomo charged that Ingenix, a subsidiary of United HealthGroup, served as a conduit for rigged data to the largest insurers in the country, including United HealthGroup, Aetna, CIGNA, Wellpoint and Empire Blue Cross Blue Shield.