Texas AG launches investigation into UnitedHealth Group over coverage denials

Texas Attorney General Ken Paxton has opened an investigation into UnitedHealth Group, Inc. (NYSE: UNH) over allegations that the company engaged in deceptive and unlawful practices that denied Texans access to medically necessary healthcare.

According to a statement from Paxton's office, the investigation stems from reports that UnitedHealth allegedly bribed nursing homes to delay hospitalizing patients who needed medical care. The office also cited a case in which a Texas patient received written approval from UnitedHealth for a procedure at RedBud Surgery Center in Austin, only to have that approval withdrawn after the procedure was completed, leaving the patient with a large medical bill.

Paxton's office stated that UnitedHealth's coverage determinations may constitute the corporate practice of medicine by overriding physicians' medical judgments and directing patient care in ways that delay treatment.

"Alarming reports keep piling up about how United treats Texas consumers," Paxton said. "I will not tolerate any insurance company putting illegal corporate greed over the people of Texas."

As part of the investigation, Paxton has issued Civil Investigative Demands to UnitedHealth to collect evidence of potential violations of the Texas Deceptive Trade Practices Act and other Texas laws.

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