UnitedHealth Group Inc. is facing a lawsuit from several large employers, including Aramark Services Inc., Kraft Heinz Foods Co., and Whirlpool Corp. The plaintiffs allege that UnitedHealth, acting as a third-party administrator for their self-funded health plans, consistently approved improper and fraudulent claims.
The lawsuit, filed on Tuesday, claims that UnitedHealth shirked its duties by approving high-dollar claims that were defective, claims for unnecessary or excluded medical services, and claims reflecting "emergency-room abuse." The employers argue that these actions forced them to pay improper claims using their own assets.
Other companies involved in the lawsuit include W.W. Grainger Inc. and Ralph Lauren. The plaintiffs contend that UnitedHealth routinely failed to fulfill its responsibilities as a third-party administrator, leading to significant financial losses.