By The Epoch Times | Created at 2026-10-06 23:36:48 | Updated at 2026-10-07 00:29:36
1 hour ago
A view of the UnitedHealth Group Inc. campus is shown in Minnetonka, Minn., on Oct. 16, 2012. Jim Mone/AP Photo
Texas Attorney General Ken Paxton has opened an investigation into allegations that UnitedHealth Group engaged in deceptive, unlawful practices that resulted in the denial of medically necessary healthcare.
The attorney general’s office cited reports that UnitedHealth Group bribed nursing homes to delay hospitalizing patients who needed medical care in an Oct. 5 statement.
The company allegedly sent a letter approving prior authorization of a medical procedure at RedBud Surgery Center in Austin to a Texas patient but rescinded the decision after the surgery, leaving the patient with a large medical bill, according to the statement.
Such coverage decisions may amount to the “corporate practice of medicine—overriding physicians’ medical judgment and directing patient care,” the statement added.
“Corporate practice of medicine” is a legal concept in Texas, developed well over 100 years ago to protect the doctor-patient relationship from financial pressures.
Paxton said, “Alarming reports keep piling up about how United treats Texas consumers. I will not tolerate any insurance company putting illegal corporate greed over the people of Texas.”
Paxton announced an investigation into the the prior authorization practices of Blue Cross Blue Shield of Texas and its parent company, Health Care Service Corporation, on Sept. 28. A statement from the attorney general’s office cited reports of the possible denial or delay of medically necessary treatment as grounds for the inquiry.
This Texas investigation is at least the fifth action by a state government in two years involving UnitedHealth Group or its subsidiary companies, including UnitedHealthcare.
A Massachusetts court ordered two subsidiaries to pay more than $165 million for deceptive practices in January 2025. An appeal is pending.
Delaware levied $450,000 in penalties against UnitedHealthcare in September 2025 for improper use of prior authorization and failure to make prompt, fair claim payments.
California fined UnitedHealthcare Benefits Plan of California $475,000 for failure to make timely medical review decisions in December 2025.
Massachusetts sued UnitedHealthcare in May 2026, alleging the company encouraged its field nurses to code MassHealth patients as sicker than they were, resulting in $100 million in fraudulent payments.
The company denied wrongdoing in a statement reported by WBUR, saying the “complaint is meritless and doesn’t accurately describe our Senior Care Options program, which helps seniors with complex care meet their individual health needs.”
UnitedHealth Group did not respond to a request for comment on the Texas investigation by the time of publication.
Paxton is the Republican nominee for the U.S. Senate from Texas. He is locked in a close race with Democrat James Talarico for the Nov. 3 election.
UnitedHealth Group is the largest healthcare company in the world, and its subsidiaries together collected more than $36.4 billion in premiums from Texans in 2024.
The Texas attorney general issued Civil Investigative Demands to UnitedHealth Group to collect evidence of potential violations of the Texas Deceptive Trade Practices Act, according to the statement.
Violations of that law can carry civil penalties up to $10,000 per violation with additional penalties if the practice aimed to take advantage of consumers age 65 or older.
Paxton can also seek a restraining order to stop practices deemed unlawful, and courts can order restitution of damages to injured parties.
