UnitedHealth Group Inc. (NYSE: UNH) is facing a formal investigation from the Texas Attorney General, Ken Paxton. The probe centers on allegations that the health insurer used unlawful and deceitful methods to block residents from receiving essential medical care.
The investigation examines reports that the company mismanaged insurance benefits and patient-care choices. Specifically, state officials claim UnitedHealth improperly incentivized or “bribed” nursing homes to delay hospitalizing individuals who urgently needed advanced medical care.
According to the reports, there was a specific instance where a Texas patient secured prior authorization from the insurer for a scheduled procedure at an Austin surgery center. However, following the operation, the insurance provider reversed its decision and withdrew the clearance. This reversal reportedly resulted in the patient being burdened with a massive, unexpected medical bill.
State officials also suspect the insurer’s routine coverage determinations constitute the corporate practice of medicine. The investigation alleges that the company overrides the expert medical judgment of treating physicians and directly dictates patient care, which officials warn delays crucial treatments and increases the risk that care will arrive too late.
In addition to the state probe, UnitedHealth faces a derivative action filed by shareholders in August. The suit alleges catastrophic corporate governance breaches from September 2021 through July 2025, asserting that executive misconduct generated artificial earnings growth.
UnitedHealth Group shares were down 1.18% at $374.13 at the time of publication on Tuesday, according to Benzinga Pro data.
