Medicare Advantage 340B Underpayment: New York Settlement "In Principle" Reached

According to the New York State Courts Electronic Filing (NYSCEF) system, Document No. 111 in NYU Langone Hospitals v. UnitedHealthcare Insurance Company et al. (Index No. 652324/2024)…… "The Parties have reached a settlement in principle."

While this development is notable, it represents only a small fraction of actual Medicare Advantage 340B Underpayment settlements.

Many provider claims begin in arbitration rather than litigation, meaning the outcomes often never become part of the public record. As a result, publicly available settlements significantly understate the volume of reimbursement disputes being resolved. With this latest development, the public record now reflects approximately more than ten Medicare Advantage 340B Underpayment settlement matters, as discussed in GDS's June 10, 2026 blog post: Medicare Advantage 340B Underpayment Settlements: What the Public Record Reveals.

Even among publicly documented cases, settlement terms are rarely disclosed. One reported settlement included interest of $195,251.48 on top of damages. Given the billions of dollars potentially at issue nationwide, Medicare Advantage 340B Underpayments remain one of the least understood—and least publicly discussed—reimbursement challenges facing hospitals and health systems.

At GDS, we have prepared hundreds of Medicare Advantage 340B damages analyses supporting arbitration and litigation matters. In many cases, disputes have been resolved shortly before expert reports, testimony, or formal damages submissions were due.

As additional disputes continue to settle and multiple nationally recognized law firms actively pursue these claims on behalf of providers, the trend is becoming increasingly difficult to ignore. The growing body of settlements—both public and private—suggests that hospitals should seek outside counsel to understand their potential exposure and evaluate whether they have experienced material Medicare Advantage 340B Underpayments.