Particle.news
Download on the App Store

Massachusetts Sues UnitedHealthcare Over Alleged $100 Million MassHealth Overpayments

The suit signals tighter state scrutiny of Medicaid managed‑care payments, potentially leading to major penalties for the insurer.

Overview

  • The state Attorney General filed a civil complaint in Suffolk Superior Court accusing UnitedHealthcare of inflating in‑home clinical assessments in the Senior Care Options program to trigger higher MassHealth payments.
  • Massachusetts says the alleged scheme included mislabeling behavioral‑health diagnoses to qualify members for higher payment bands and assigning many people to the highest‑paying Level 3 without meeting that level’s clinical criteria.
  • The complaint also alleges UnitedHealthcare reported daily skilled nursing visits that most members did not need or receive, which increased per‑member reimbursements.
  • State filings and reporting cite internal UnitedHealthcare reviews from 2018–2019 that found widespread incorrect Level 3 classifications and say the company revised assessments without disclosing downgrades or repaying excess funds.
  • The state seeks civil penalties, treble damages, interest and repayment of overpayments, and the case could affect oversight of managed‑care contractors and services received by older and dual‑eligible MassHealth beneficiaries.