News in brief - Nov. 22/29, 2004

United companies pay fine - MedQuist reports "unreliable"

United companies pay fine

Two companies owned by UnitedHealth Group will pay $2.2 million in fines to settle allegations they failed to correct malfunctions in their claims processing system.

The settlements, by UnitedHealthcare of North Carolina and United Healthcare Insurance Co., consist of payments of $1.1 million each and a pledge to implement changes in their claims processing systems, as well as improvements in the handling of claims-related complaints. The state's Dept. of Insurance began scrutinizing their performance in 2001 as complaints about errors swelled.

The companies did not have to admit any violations as part of the settlements, announced in November. United did not return calls seeking comment.

The insurance department said physicians who are owed money must contact the companies directly. State law mandates the fines go into a fund for public schools.

Robert Seligson, executive vice president and CEO of the North Carolina Medical Society, said his organization "applauded" the insurance department's work. He also said the society would watch to ensure the companies live up to their agreement to improve their operations and better address physician complaints.

In May, the society sued United Healthcare of North Carolina, accusing it of improperly delaying, denying, bundling and downcoding physician claims. The case is pending.

MedQuist reports "unreliable"

MedQuist Inc., a Mt. Laurel, N.J., medical transcription company, announced on Nov. 2 that the financial reports it filed with the Securities and Exchange Commission in 2002 and 2003 are unreliable. The company, which has been accused of overcharging customers and is under SEC investigation, also said that it could not predict when independent accountants will complete the audit of its 2003 financial statements and resume filing financial reports for 2004 with the SEC.