UnitedHealth Group wants new venue in whistleblower case

The insurer asked that a dispute over Medicare payments be moved to D.C.

July 19, 2017 at 11:43PM

UnitedHealth Group says a lawsuit brought by a whistleblower in the Twin Cities that is currently being heard in California should be moved to a court in Washington, D.C.

The Minnetonka-based company made the motion earlier this week in a case that alleges the nation's largest health insurer wrongly received risk adjustment payments for its Medicare Advantage health plans via "one-sided" chart reviews that boosted payment rates while not correcting data errors.

In a court filing Monday, UnitedHealth Group says the dispute is best handled by a court in the District of Columbia because that's the district where the insurance company filed suit last year against the government over the Medicare billing issue raised by the whistleblower.

The Justice Department (DOJ) joined the whistleblower case earlier this year, saying in a May court filing that UnitedHealth Group might have received $1 billion based on inaccurate data.

"This case has strong connections to Washington, D.C.," lawyers for UnitedHealth Group argued in their motion. "For one, if it is transferred there, it may be coordinated with a case in which the arguments are [in DOJ's own words] 'identical' and 'central' arguments that will be raised in this case."

A DOJ spokesman declined to comment.

Benjamin Poehling, a former UnitedHealth Group executive in the Twin Cities, filed the whistleblower lawsuit under seal in 2011. It alleged the company and health plans that hired one of UnitedHealth Group's subsidiaries submitted false information about patient conditions for those covered through Medicare Advantage (MA) plans, which are a private alternative to the traditional Medicare program.

In January 2016, UnitedHealth Group filed a lawsuit against the federal government's Centers for Medicare and Medicaid Services (CMS) challenging a new rule that the insurer says would require MA plans to apply more scrutiny to the accuracy of their risk adjustment data than the government applies to its own.

That's a problem, UnitedHealth Group argued, because MA plans are paid based on a comparison of the health status of their enrollees vs. those covered through the traditional program. The company said that if private plans are required to apply more scrutiny than the government does, it "creates the false impression that an MA plan's patients in general had fewer medical conditions, and were thus less costly to insure."

In moving this week for a change of venue, UnitedHealth Group revisited the arguments raised in the 2016 lawsuit — a case that has not yet concluded.

The insurer also argued Washington, D.C. would be more convenient for most witnesses, and alleged DOJ had the case moved to California "to take advantage of" a Ninth Circuit ruling in a similar case brought by a California whistleblower.

A court is scheduled to hear the change-of-venue argument in late September, after which UnitedHealth Group's response to the Poehling complaint will be due. Last week, UnitedHealth Group filed a motion to dismiss the case from the California whistleblower.

Christopher Snowbeck • 612-673-4744

Twitter: @chrissnowbeck

about the writer

about the writer

Christopher Snowbeck

Reporter

Christopher Snowbeck covers health insurers, including Minnetonka-based UnitedHealth Group, and the business of running hospitals and clinics.

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