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United Healthcare Insurance to pay $3.5 million in Medicare fraud settlement

United Healthcare Insurance Company will pay the United States $3.5 million to settle charges that it knowingly mishandled phone inquiries from Medicare beneficiaries and providers. The company allegedly provided false performance information to the Centers for Medicare and Medicaid Services.

A former employee, who filed a whistleblower lawsuit under the federal False Claims Act, will receive $647,500 of the settlement amount.

The Dept. of Justice press release was issued on December 13, 2004.

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