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One whistleblower accused the giant corporation of "compelling medical professionals to comply with its financially-driven playbook at the expense of patient safety."
A pair of Democratic senators on Thursday launched an investigation into the most powerful corporation in the U.S. healthcare system, sounding alarm over allegations that UnitedHealth Group is incentivizing nursing homes to slash care expenses for patients insured by the company.
Sens. Ron Wyden (D-Ore.) and Elizabeth Warren (D-Mass.) wrote in a new letter to the company's CEO that UnitedHealth Group (UHG) has "been at the center of numerous reports suggesting that it is maximizing profits at the expense of patients' health and well-being," including accusations that the company "systematically denied needed care to children and adults with chronic illnesses" and used an artificial intelligence algorithm to deny Medicare Advantage enrollees necessary care.
Most recently, the senators noted, reporting by The Guardian alleged that UnitedHealth is using a bonus scheme to push nursing homes that contract with Optum to reduce hospital transfers as part of an aggressive cost-cutting effort. Optum is a UHG subsidiary that employs or affiliates with roughly 10% of all physicians in the U.S.
Wyden and Warren demanded that UnitedHealth provide answers to numerous questions related to its practices at nursing homes, including whether it institutes "hospital transfer quotas" at the facilities it works with.
"UHG denies the allegations in The Guardian's reporting and maintains that its practices reflect best practices in the care of nursing home residents," the senators wrote. "However, we are concerned that the methods UHG appears to rely on to deliver the high-quality care it purports to provide may in fact incentivize practices that threaten resident safety."
"I'd like to see them held accountable for putting profits over patients."
The Guardian's reporting underscores the extent to which UHG has injected itself into virtually every aspect of the American healthcare system. The healthcare conglomerate has roughly 2,700 subsidiaries, according to an analysis by the Center for Health and Democracy.
Using confidential corporate and patient records, whistleblower accounts, and interviews with UHG staffers and nursing home employees, The Guardian examined a company program under which Optum medical teams provide care on-site at nursing homes or in partnership with facility staff.
The newspaper identified "several cases" in which "nursing home residents who needed immediate hospital care under the program failed to receive it, after interventions from UnitedHealth staffers."
"At least one lived with permanent brain damage following his delayed transfer, according to a confidential nursing home incident log, recordings, and photo evidence," the newspaper reported. "To reduce residents' hospital visits, UnitedHealth has offered nursing homes an array of financial sweeteners that sounded more like they came from stockbrokers than medical professionals."
The company also allegedly gave its medical teams "budgets" limiting the number of hospital admissions they could allow for nursing home patients.
One whistleblower, a nurse practitioner formerly employed by a UnitedHealth insurance subsidiary, said in a statement that "scores of elderly patients may never have received the care that they needed, all because UnitedHealthcare skimped on care to cut costs."
“UnitedHealthcare is compelling medical professionals to comply with its financially-driven playbook at the expense of patient safety in a way that pressures providers to violate their ethical obligations," the whistleblower added. "I'd like to see them held accountable for putting profits over patients."
UnitedHealth raked in over $34 billion in profits last year—far more than any other U.S. healthcare company.
Wendell Potter, a former Cigna executive who now serves as president of the Center for Health and Democracy, wrote in a recent blog post that mounting scrutiny of UHG's practices shows the company is "facing a reckoning it can't ignore."
"It's coming from every direction: the U.S. Department of Justice (under President Donald J. Trump), congressional Republicans and Democrats, state lawmakers and regulators, the media, physicians, hospital administrators, tens of thousands of Americans on the internet sharing their own personal UnitedHealth horror stories, and, most importantly for the C-Suite, enraged investors who've lost hundreds of billions of dollars in recent months," Potter wrote.
If the Big Ugly Bill becomes law, over half of nursing homes say they will have to reduce staff, and a quarter say they will close.
Imagine learning that your grandmother’s nursing home is closing. The nearest one with room for her is a three-hour drive away. It doesn’t accept Medicaid, so if your grandmother is among the two-thirds of nursing home patients who are covered by Medicaid, she’s out of luck.
Your grandfather still lives at home. But the hospital near his house is closing, too. If he has a medical emergency, he’ll have to go to an overburdened hospital that’s 40 minutes away.
That’s what will happen if President Donald Trump’s so-called “One Big Beautiful Bill” becomes law. There’s nothing beautiful about this hideous betrayal of the American people. Unless you’re a billionaire who can hop in a helicopter to see your private doctor, it will make your health care worse. All to give that same billionaire a giant tax cut.
Sen. Mitch McConnell (R-Ky.) says Americans who are concerned about Medicaid should “get over it.” Sorry, Mitch. We refuse to “get over it,” and we’re not dying quietly.
The Big Ugly Bill cuts a trillion dollars from Medicaid. Even if you’re not on Medicaid, this will hurt you and your family. That’s because hospitals and nursing homes around the country rely on Medicaid for much of their funding.
If this bill becomes law, over half of nursing homes say they will have to reduce staff, and a quarter say they will close. At the nursing homes that remain open, seniors and people with disabilities will wait in agony for someone to take them to the bathroom or give them their pain medication.
Those whose nursing homes close will struggle to find another one with room for them, especially if they rely on Medicaid. If they manage to find one, it will likely be hours away from their loved ones.
This bill is a disaster for people who rely on Medicaid to pay for nursing homes and other long-term care. But it’s also a disaster even for those who don’t directly rely on Medicaid, because it will devastate the entire healthcare system. Rural areas will be hit hardest, but nowhere and no one (except for billionaires) is safe.
Sen. Joni Ernst (R-Iowa) told Iowans concerned about the bill’s Medicaid cuts that “we all are going to die.” Many of us will die faster, including the hundreds of Iowans who will lose their nursing home beds.
In Iowa alone the impact is massive across the entire state and in each vulnerable Republican House District.
In Iowa’s 1st District, represented by Republican Mariannette Miller-Meeks, four nursing homes with a collective 280 beds will close: Aspire of Muscatine (46), Mississippi Valley Healthcare & Rehabilitation Center—Keokuk (83), Iowa City Rehab and Health Care Center—Iowa City (89), and Azria Health Prairie Ridge—Mediapolis (62).
In Iowa’s 2nd District, represented by Republican Ashley Hinson, two nursing homes with a collective 271 beds will close: Heritage Specialty Care—Cedar Rapids (201) and Cedar Falls Healthcare Center (70).
In Iowa’s 3rd District, represented by Republican Zach Nunn, two nursing homes with a collective 113 beds will close: Aspire of Perry (46) and Granger Nursing and Rehabilitation Center—Granger (67).
And this story repeats across the entire country. There is no place to hide from the tsunami being unleashed against nursing homes. Anyone who has dealt with the current system knows how bad it is now. It is about to be a whole lot worse. Nursing homes that don’t close outright will become death traps as the demand far outstrips the supply.
All of this needless death and chaos, just so some billionaires can get trillions in tax handouts that they don’t even need.
Sen. Mitch McConnell (R-Ky.) says Americans who are concerned about Medicaid should “get over it.” Sorry, Mitch. We refuse to “get over it,” and we’re not dying quietly.
Polling shows that Americans hate the Big Ugly Bill—if they know about what’s in it. The problem is that most of them don’t. Nearly half of Americans are completely unaware of the bill, and only 8% of them know it cuts Medicaid.
Talk to your friends and family members. Tell them that Republicans are about to cause a nursing home and hospital apocalypse—but it isn’t too late to stop it. The Senate is voting on the Big Ugly Bill very soon. Then, it goes back to the House of Representatives, where Republicans will try to rush the bill through before the public can learn about it.
Call your representative and both senators now at 202-224-3121. The key swing votes in the Senate include Susan Collins of Maine (the oldest, and most rural, state in the country) and Lisa Murkowski of Alaska. If you know anyone in those states, urge them to call today and tell their senators to stop the nursing home apocalypse!
Every moment that activists can delay the passage of these Medicaid cuts is more time to mount an opposition. Republicans might not want to admit it, but support for Medicaid is strong and deep.
The numbers are clear. Nursing home residents depend on Medicaid. According to the nonpartisan Kaiser Family Foundation, fully 63% of nursing home care in the United States is funded by Medicaid. Some states are even more dependent on Medicaid than the national average. For example, in West Virginia fully 77% of nursing home care is funded by Medicaid.
Politico reported on the morning of May 15 that after a marathon markup session lasting 26 hours, the House Energy and Commerce Committee advanced legislation that “would slash Medicaid spending by hundreds of billions of dollars.” These cuts would directly impact nursing home residents and their families. The Washington Post reports that:
“Their [nursing home residents] coverage will be at risk,” said Katie Sloan Smith, president and chief executive of LeadingAge, a Washington lobbying association for operators of nonprofit senior-care facilities. “Either the home itself will have to make up for that loss in some way or they will simply have to say, ‘We can no longer support people on Medicaid’ and close those beds.”
While the Medicaid cuts would hurt nursing home patients, they would also severely impact those who receive care at home (often referred to as home and community-based care). According to National Public Radio, Medicaid pays for care at home for roughly 4.5 million Americans.
The Medicaid cuts that passed the Energy and Commerce Committee would devastate America’s family caregivers as Medicaid also funds caregiver respite programs and caregiver training. The cuts would hurt our most vulnerable and their families.
Where are our citizens on the question of Medicaid cuts? The evidence clearly shows that the American people oppose Medicaid cuts. In fact, there is support for more spending on Medicaid. Polling from the Kaiser Family Foundation published in March of this year found that 42% want to see an increase in Medicaid spending. Just under 3 in 4 (73%) of respondents say that Medicaid is important to their local communities. Democrats (83%), Independents (74%), and Republicans (61%) all see Medicaid as very important to their local community.
Late Thursday May 15, the fate of the measure that passed the Energy and Commerce Committee was in doubt as the legislation moves to a vote in the House of Representatives. There will no doubt be more twists and turns before the measure heads to the Senate. Every moment that activists can delay the passage of these Medicaid cuts is more time to mount an opposition. Republicans might not want to admit it, but support for Medicaid is strong and deep.
This is the greatest threat to Medicaid since its creation in 1965. The GOP legislation is a dagger pointed directly at our most vulnerable. Many of those who would be impacted by Medicaid cuts are not able to raise their voices. Therefore, it up to those of us who can, to raise our voices and tell our elected representatives to reject these cruel proposals that would devastate our families, friends, and neighbors. The stakes in the debate over Medicaid are far too high for any of us to stay silent.