Dialysis firm forks out $32M to reach settlement with UnitedHealthcare

American Renal Associates, a dialysis company based in Massachusetts is planning on paying the Minnesota based health care company, UnitedHealthcare a sum of $32 million as a fragment of a settlement agreement.

The settlement agreement releases all claims asserted against American Renal Associates (ARA) and the other named defendants in the Florida and Massachusetts actions without the Massachusetts based company admitting to any villainy or accountability. The settlement has called for the parties to reach its final terms by the first of August 2018.

American Renal Associates in conjunction to the announced agreement will cater as an in-network dialysis clinic for UnitedHealthcare subscribers in 26 states plus the District of Columbia.

Both companies in a joint statement stated that they are glad to have reached a conclusion on the matter and are looking forward to developing a more cooperative association that will allow them to amalgamate behind one objective i.e. high-quality care for dialysis patients.

UnitedHealthcare presented the lawsuit against ARA first in July of 2016. At the time, the lawsuit was a renowned example that depicted how health plans were avowing the individual market under Obamacare also known as the federal Affordable Care Act which was being manipulated by an inordinate number of people who were pursuing coverage for expensive services.

UnitedHealthcare, earlier this year filed another lawsuit against ARA alleging a scheme that would get people in possession of employer coverage to receive out-of-network care from the dialysis company which in turn would then charge the insurer inflated rates according to the lawsuit.

ARA in turn brought the merit of both the lawsuits in question and committed to strenuously defend itself.

ARA in regulatory filing stated that the company expects to make the total settlement payment of $32 million under the final agreement. The amount will be inclusive of plaintiffs’ counsel and administrative fees and will be paid in five installments, with the first installment beginning on Aug. 1, 2018.