Staring at a $20 billion deficit, California decided it was time for a record-setting lawsuit.
State regulators are seeking $9.92 billion from PacifiCare for various allegations relating to mismanaged claims, LA Times reports. PacifiCare is owned by UnitedHealth Group Inc., the state’s largest health insurer.
If the penalty sounds big, that’s because it is:
The potential penalties are so large because the state is seeking fines as high as $10,000 for each of the 992,936 violations it is alleging, for a maximum $9.92 billion.
The National Assn. of Insurance Commissioners said the total potential fines appeared to be the biggest of their kind.
What’s great about this fundraising method is it won’t offend any voters, except healthcare workers and investors. The only risk is that UnitedHealth will raise costs in a legal way and push California health care deeper in the red.
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