In a complaint filed last month in US District Court in Houston, Redoak Hospital said Marathon violated federal insurance laws by participating in "an elaborate scheme to abstract, withhold, embezzle and convert" health insurance plan funds by "camouflaging" them as overpayment recoupments.
Click here to read the complaint.
Redoak claims that Marathon and its insurer, United Healthcare, abandoned their fiduciary duties and entered into the illegal agreement, which allowed United to withhold plan funds and convert them for their own use.
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