The class action lawsuit alleges Principal Financial Group and Principal Life Insurance Company shortchanged and failed to fully reimburse consumers and providers for out-of-network health care costs.
Principal shortchanged and underpaid consumers by using a database owned and operated by Ingenix, Inc. The Ingenix database purportedly is used to help Principal determine the “usual, customary, and reasonable,” or “UCR,” rate for out-of-network health care services. But the Ingenix database is flawed and hurts consumers by artificially lowering out-of-network reimbursement rates.
In the class action plaintiffs allege Principal Financial Group and Principal Life Insurance Company used Ingenix’s flawed claims database to improperly lower reimbursement rates for out-of-network claims. The lawsuit alleges Principal knew the Ingenix data was improperly altered, is incomplete, and is skewed to hurt consumers and health care providers.
The class action alleges Principal knew the flawed data should not have been used to set reimbursement rates and alleges Principal’s out-of-network reimbursements were well-below local prevailing health care rates.
To get more information, to discuss your rights, or to join this class action, please call 1-619-573-1700.