HMO to pay $41M for shorting NJ patients

August 27, 2008 5:03:40 AM PDT
State officials say a health maintenance organization has paid $41 million in claims and fines for shortchanging 88,000 customers in New Jersey. State officials say Health Net underpaid claims to reimburse patients for out-of-network health care services between 1996 and 2006.

Checks, ranging from several thousand dollars to a few dollars, were mailed to current and former customers starting last month.

Health Net serves 120,000 policyholders in the Garden State.

The HMO was once know as First Option Health Plan of New Jersey and Physicians Health Services of New Jersey.

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