The United Group Inc. has consented to pay $350 million as a reimbursement to patients for out-of-network medical services. The move was initiated to resolve a law suit against the company.

Two days prior to the settlement another agreement was settled by the UnitedHealth with the New York state attorney general.  The agreement was reached as a result of an investigation into the database used by the company to reimburse the medical bills of the patients.

UnitedHealth is also closing Ingenix medical billing information service. Ingenix had been the focus of the investigation.

It was found by Cuomo that UnitedHealth's Ingenix unit operates a "defective and manipulative" database. 

Insurers often promise to cover up to 80 percent of the so- called "usual and customary" rate of an out-of-network expense.  The Ingenix database manipulated the database to bring down these rates.  By doing so the company increased its profits at the cost of the patients and physicians.

The  $350 million settlement also brings to an end the  litigation filed on behalf of the American Medical Association, health plan members, healthcare providers and state medical societies.

Though UnitedHealth has reached a settlement, it did not admit wrongdoing. The company has been absolved from claims relating to its out-of-network reimbursement policies dating back to 1994.