NEW ORLEANS — United Healthcare is suing medical service provider UTC Laboratories for allegedly failing to follow the terms of a $1.6 million settlement agreement.
“UTC breached the settlement agreement and United is entitled to recover the entire unpaid balance...along with attorneys’ fees and costs from UTC,” the complaint states.
UTC is a company that focuses on providing toxicology, genetic sequencing and other advanced diagnostic medical services. United is one of the nation’s largest health insurance providers, based in Minnesota.
The lawsuit, filed on July 31, in U.S District Court for the Eastern District of Louisiana, stems from a settlement agreed to by the plaintiffs and defendants, after United performed an audit of 1,168 claims paid to UTC.
After reviewing the details of the audit, the two parties agreed that UTC would settle any outstanding claims or related disputes, which totaled $1,625,000. The balance was to be paid each month over two years, beginning on Aug. 30, 2017.
According to the complaint, UTC paid $1,064,736 until Feb. 28, when it stopped sending payments to United. The settlement stated that if the payment wasn’t sent within 10 days of the due date, UTC would be considered to be in default.
The settlement contract also states that upon default of payment, the entire remaining balance would then become due and payable to United.
“United shall be entitled, in its sole discretion, to enforce this agreement in court, and obtain a judgment for any amounts still due hereunder as well as attorneys’ fees and costs associated with such enforcement,” the settlement agreement states.
The complaint, which cites breach of contract, asks for relief in way of the remaining balance, as well as attorneys’ fees and other costs to collect the unpaid balance.