UnitedHealth, Anthem Penalized for Inadequate Plan Spending

Federal regulators have barred three Medicare health plans operated by UnitedHealth Group Inc. and another owned by Anthem Inc. from enrolling new members next year because they didn’t spend the minimum amount required on medical benefits.

Private Medicare health plans are required to spend a certain threshold of their premium revenue on medical claims. The Centers for Medicare and Medicaid Services determined that the plans didn’t hit the required 85% level for three years in a row, prompting the sanctions, according to letters dated Sept. 2 and posted on the CMS website.