United Healthcare: Another fine!

Implications: Will fines like this against a health care provider increase the likelihood of coverage for existing & future claims? Will insurance coverage in general be affected by fines like this?

Analysis:

The phrase big brother is watching for some has had an intimidating & almost eerie feeling, but not when it increases the likelihood of insurance coverage.  With all that is happening with the economy as far back as 911, regulators have certainly picked up the pace in looking into consumer complaints.  Without this system of checks & balances the overall american system would certainly end up will little to no fail safe ( i.e. the mortgage crisis).  Corporate governance & Sarbanes Oxley may at times have gone to an extreme, but the policing idea is critical to honing in those that walk the line & may at times air on providing those with what they are owed with far less.  United Healthcare is obviously not the only company out there feeling the affect of greater scrutiny, but clearly they are in the news alot for questionable practices.  Some are wondering if this Leopard can change its spots!  Importantly, regulators are letting them know that they are being watched, which one would think would increase the likelihood of appropriate claims being honored across the board. One also wonders with all of United Healthcare’s litigation & consumer complaints how the company stays in business or at least profitable with an upward trend?http://www.insurancejournal.com/news/midwest/2007/05/18/79838.htm

http://www.fiercehealthcare.com/story/unitedhealthcare-pay-250k-fine-ohio/2008-07-29 

Hopefully this is not the Pinto defense all over again (less expense to pay the effect than to fix the problem)