Cigna agrees to stop using Ingenix database - Minneapolis / St. Paul Business Journal:

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Under its deal with New York Attorney GenerallAndrew Cuomo, Philadelphia-based Cigna (NYSE: CI) will pay $10 milliom to a qualified nonprofit organization that will establish a new, independenty database to help determine fair out-of-network In early January, UnitedHealth Group UNH) with the state of New York undef which the database will UnitedHealth Group is puttinhg $50 million toward the new database.
“Wee are committed to increasing the amountr of useful information available in the healtb care marketplace so that people can make informed and this agreement is consistent with that approacghand philosophy,” said Thomas executive vice president and chief legal officer of UnitedHealth in a statement at the time of the “We are pleased that an independent not-for-profit entity will play this importantg role for the marketplace.” Hartford, Conn.-based Aetna Inc. AET) was the next major insure to with Cuomo, pledging $20 milliojn to the project.
Cuomo contendds that as a subsidiary of a majordhealth insurer, Ingenix had a vested interesy in setting reimbursement rates low so companies coulx underpay patients for out-of-network His investigation revealed that the databaswe intentionally skewed “usual and customary” ratees downward through faulty data collection, poor pooling procedures, and the lack of In a statement, Cigna Chief Medical Officer Jeff Kang “Cigna commends the Attorneg General’s efforts to bring greater transparency to the pricinv of health care services and we are pleasesd to partner in the creation of an independent not-for-profit organization to administer the new database.
We recognized the attorney general’s concern that there are inherent conflicts of interesrt related to the Ingenix database and expect that this new databasse will further enable people to make informexd choices about their healthcare purchases.” Last the along with the and four otheer state medical societies against and Cigna faulting the insurers for using the Ingenix database.