Maryland Sues UnitedHealth Group for $126 Million in Alleged Medicaid Fraud
Maryland has filed a lawsuit against Optum and UnitedHealth Group, alleging that they collected over $126 million while operating a Medicaid claims system that was never fully functional during its five-year contract term.
The state alleges that the system, which was supposed to be operational in January 2020, immediately crashed upon launch, rejecting nearly half of all submitted claims for no discernible reason. The system's issues led to estimated payments being made to providers, resulting in over $220 million in overpayments and ongoing audits and recoupment efforts.
The lawsuit seeks treble damages, civil penalties of up to $10,000 per false claim, and punitive damages. Providers who billed through the Optum ASO system should review audit notices and overpayment demands carefully to preserve defenses and prepare to challenge unsupported audit findings.