

New York’s attorney general has reached a settlement requiring a Buffalo-based insurer to pay thousands of improperly denied claims for outpatient psychotherapy and about 125 claims for nutritional counseling for eating disorders. Investigators found more than $1.6 million in wrongful insurance denials by HealthNow New York Inc., which covers more than 573,000 New Yorkers, according to the attorney general’s office. The investigation followed consumer complaints last year.

