Minnetonka, Minn.-based UnitedHealthcare agreed to expand its coverage of hepatitis C medication in an effort to settle a $300 million class-action lawsuit brought against the company by policyholders, according to The Daily Business Review.
The settlement agreement filed in a federal Miami court on Sept. 9 resolves claims the insurer wrongfully denied policyholders coverage of Harvoni, a drug used to treat hepatitis C. The medication is the only drug of its kind that cures hepatitis C in 95 to 99 percent of cases, according to the article.
Prior to the lawsuit, UnitedHealthcare would only cover the cost of the drug for hepatitis C patients with severe liver fibrosis. The insurer removed the stipulation seven months after the lawsuit was filed. The company also agreed to remove the stipulation that policyholders prove they abstained from drug and alcohol use for six months prior to the treatment, according to the article.
As part of the settlement, UnitedHealthcare agreed to create a $500,000 fund to help former policyholders to buy insurance from United or another insurer.
The settlement is currently awaiting approval by the district attorney.