Texas Probes UnitedHealth Over Alleged Deceptive Insurance Practices

Texas Attorney General Ken Paxton has launched a formal investigation into UnitedHealth Group, one of the largest health insurance providers in the U.S., over concerns about its insurance coverage practices. The probe was triggered by reports alleging that the company improperly denied patients access to necessary medical care and engaged in deceptive insurance practices. Among the cases under scrutiny is an incident involving a Texas patient who had received prior authorization for a procedure at RedBud Surgery Center in Austin, only to have UnitedHealth revoke the approval afterward, leaving the patient with a hefty medical bill.

The investigation also examines allegations that UnitedHealth made coverage decisions that disregarded the medical judgment of treating physicians. Paxton’s office is looking into whether these practices could violate Texas laws, including the Deceptive Trade Practices Act. Additionally, the state is reviewing reports that UnitedHealth provided financial incentives to nursing homes to avoid or delay hospital transfers for certain patients, though these allegations remain unproven.

Paxton has issued civil investigative demands to UnitedHealth, seeking records and other information to determine if any laws were broken. The investigation does not confirm wrongdoing but aims to uncover potential violations. This probe follows another investigation Paxton announced last week into Blue Cross Blue Shield of Texas over similar allegations involving prior authorization and delays in medically necessary care. As of Monday, UnitedHealth Group had not publicly responded to the Texas investigation.