United Healthcare Insurance Company paid $3.5 million to settle allegations that it defrauded the Medicare program. From October 2, 1995 to October 1, 2000, United Healthcare acted under contract with the Centers for Medicare and Medicaid Services (CMS) as a Durable Medical Equipment Regional Carrier. Under that contract, United Healthcare processed Medicare Part B claims for durable medical equipment submitted to it by Medicare beneficiaries, physicians, and other health care providers and suppliers located in the northeastern United States. The government alleged that, beginning in or about 1996 and continuing through 2000, United Healthcare’s telephone response unit knowingly mishandled certain phone inquiries received from Medicare beneficiaries and providers and then falsely reported its performance information to CMS concerning the company’s handling of those calls. Under the settlement, United Healthcare did not admit any of the allegations in the complaint.