Slow payments cost United Healthcare 750k

UnitedHealthcare agreed to a consent order signed by Insurance Commissioner John W. Oxendine, whose office does routine audits. The agreement includes United Healthcare along with sister companies American Medical Security Life Insurance Co. and Golden Rule Insurance Co.

By agreeing to the consent order, United Healthcare waived its right to a hearing.

"It is unfortunate that fines must be imposed to encourage compliance," Oxendine, a Republican running for governor in 2010,  said in a statement. "Consumers and doctors deserve prompt payment."

The state is reviewing claims payment schedules of other insurance companies, and Oxendine said more fines are likely. The law states that if an insurer doesn't pay the bill within 15 days, it must explain to the policy holder why there is a delay.

United Healthcare, which has more than 980,000 active direct written premiums in Georgia, said it pays the large majority of claims on time.

"Timely and accurate payment is important and United Healthcare processes 99 percent of claims for its Georgia customers within 30 days," spokeswoman Cheryl J. Randolph said in a prepared statement.

Oxendine's office said the claims that were paid late during the audit period represented more than $20 million.

It's not the first time United Healthcare was fined for slow payments in Georgia. In 2005, the company was fined $2.8 million for slow payments on more than 75,000 health care claims. The company also was fined for similar violations in 2000 and 2002. Other large insurers have also been fined in recent years.