The investigation into UnitedHealthcare's claims processing revealed many errors, such as not applying correct fee schedules and not applying deductibles correctly, according to the New York State Insurance Department, one of five states to lead the investigation under the auspices of the National Association of Insurance Commissioners.

Nevada received the smallest portion of the settlement — about $38,000 — while New York has the largest settlement — $3.7 million.

Nevada Insurance Commissioner Alice A. Molasky-Arman said Nevada received the smallest settlement because it found few violations of prompt payment laws in the state.

The settlement was taken into consideration when Molasky-Arman made the state's decision approving UnitedHealth's $2.6 billion acquisition of Las Vegas-based Health Plan of Nevada, a subsidiary of Sierra Health Services, she said in a statement. The merger still needs approval from the U.S. Department of Justice.

"One of the conditions I imposed as a condition of approval of the merger was to require Sierra's system of claims handling to continue after the acquisition to ensure the high quality of service Nevadans have received and deserve," she said.

UnitedHealth spokesman Tyler Mason said the company chose to settle in the spirit of moving forward. The company expects more states to seek settlement, he added.

As part of the agreement, the company will hire an independent auditor to review its claims processing procedures on a quarterly basis, Mason said, instead of waiting a year or two for problems to be discovered.

The settlement also requires collaborative monitoring of United's market practices by the five states — Iowa, Florida, Connecticut, Arkansas and New York — leading the investigation, according to New York's insurance department.

If benchmarks established by the settlement (claims accuracy, claims timeliness, appeals review and consumer complaint handling) are not met, United could face an additional fine of as much as $20 million.

In other health care news

• There will be a hearing Oct. 5 in Indianapolis to consider the liquidation petition filed against Benicorp Insurance Co., which has about 7,000 people signed up for its plan in Nevada, the majority in the north. Indiana Division of Insurance seized control of the health insurer in August after it failed to submit a timely independently audited report of its finances, and the company was failing financially, according to court documents. Insurance policies issued by Benicorp can be transferred to United Healthcare until Oct. 1.

• The Shriners — perhaps best known as the clowns in funny hats driving miniature cars in parades — have made a five-year commitment to sponsor the PGA Tour Frys.com Open in Las Vegas, starting next year. As part of the agreement, the Shriners Hospitals for Children will commit necessary resources to the tournament through at least 2012, which will benefit the network of hospitals.

There are 22 network hospitals in North America that offer free medical care to children under 18 years old, the nearest location in Los Angeles.

• At Sunrise Hospital and Medical Center, patients will have access to a cancer resource center, sponsored by the American Cancer Society. The center, located at 3186. S. Maryland Parkway, offers immediate support to people diagnosed and treated for cancer, as well as up-to-date research and local resource information.

The center offers 24-hour access to the society's National Information Call Center and its Web site, cancer.org.