New York Attorney General Andrew Cuomo announced Thursday that Health Net Inc. has agreed to stop using data from Ingenix to set its insurance rates and instead will contribute $1.6 million toward the creation of a new data source.

By mid-morning, Health Net stock gained $1.11, or 8 percent, to trade at $14.38 per share.

The Health Net deal ends an effort by Cuomo to reform insurance rates. He alleged that insurers have used bogus data to set “out of network” rates and overcharge patients who use doctors or hospitals that don’t belong to a specific insurance plan or health maintenance organization.

The attorney general has secured agreements with 12 health insurers to put up $100 million to create a better data base for determining rates.

Based in Woodland Hills, Health Net is an insurance firm with approximately 200,000 members in New York State.