UnitedHealth Group Inc. sued kidney-care chain American Renal Associates Holdings Inc., accusing it of fraud as health-industry fights escalate over who is allowed to help consumers pay for Affordable Care Act coverage.
The lawsuit by the biggest U.S. health insurer, filed Friday in U.S. District Court in Florida’s Southern District, said American Renal Associates engaged in a “fraudulent and illegal scheme” to get larger payments from the insurer by convincing patients to sign up for UnitedHealth plans and connecting them with a charity that helped pay their premiums. The suit said the patients were eligible for coverage from Medicare and/or Medicaid, but the dialysis provider could receive far bigger reimbursements for treatments if patients had the UnitedHealth plans.
American Renal Associates, a Beverly, Mass.-based company that operates about 200 dialysis clinics and went public in April, said in a statement that the suit is “without merit,” and that it intends to “vigorously defend this legal action for American Renal and on behalf of all patients who choose and trust us with their care.” The company said it is “dedicated to putting patients first.”
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