A company that sells health insurance business support services is suing a large managed care company over a contract cancellation.
TMG Health Inc., King of Prussia, Pa., says it has filed a lawsuit against UnitedHealth Group Inc., Minnetonka, Minn., in the U.S. District Court in Philadelphia.
The dispute concerns efforts by TMG to provide support services for a Medicare private fee-for-service plan that PacifiCare Health Systems Inc., Cypress, Calif., planned to launch in September 2005.
UnitedHealth agreed to acquire PacifiCare in July 2005.
TMG says it was told that UnitedHealth would keep the PacifiCare FFS support services contract. Instead, UnitedHealth canceled the contract soon after it acquired PacifiCare, TMG says.