HealthNow Settles For $1.6 Billion With New York AG Over Denial Of Outpatient Eating Disorders Treatment

New York State Attorney General Eric T. Schneiderman has announced that Buffalo-based HealthNow, New York, Inc. will pay $1.6 million in patient claims for outpatient psychotherapy and nutritional counseling for eating disorder as part of their settlement with the state. In addition to paying members for the wrongfully denied claims, the company will revise its policies, and provide additional staff training. HealthNow, which provides coverage for approximately 573,700 members in New York, will also pay $60,000 to the Office of the Attorney General (OAG) as a civil penalty.

Attorney General Schneiderman’s Health Care Bureau launched . . .