Aug 7 (Reuters) -
U.S. Senators Ron Wyden and Elizabeth Warren are launching
an investigation into UnitedHealth Group ( UNH ) related to
allegations that the company secretly paid nursing homes
thousands in bonuses to help slash hospital transfers for ailing
residents.
In a letter dated August 6 to UnitedHealth ( UNH ) CEO Stephen
Hemsley, the senators called on the healthcare conglomerate to
provide detailed information about its reported incentive
programming and its impact on residents.
The company in July publicly confirmed it was under
investigation by the U.S. Department of Justice and said it was
complying with both criminal and civil requests from the federal
agency over its Medicare business, a U.S. government program
that covers medical costs for individuals aged 65 and older and
those with disabilities.
The senators have sought responses by September 8 about the
company's hospitalization policies, directives related to care
planning for nursing home residents enrolled in their
institutional special needs plans, marketing practices related
to those plans and federal oversight related to them.
In May, the UK's Guardian newspaper reported the company
made secret payments to nursing homes, as part of a series of
cost-cutting tactics that saved the company millions, but at
times risked residents' health, citing an investigation carried
out by the newspaper.
"Any attempt to take advantage of vulnerable nursing
home residents is unacceptable, especially to pad a for-profit
insurance company's revenues," the senators said in the letter.
At that time, UnitedHealth ( UNH ) had said the U.S. Department of
Justice had investigated those allegations, interviewed
witnesses, and obtained thousands of documents that demonstrated
the significant factual inaccuracies in the allegations.
UnitedHealth ( UNH ) did not immediately respond to a Reuters
request for comment when contacted on Thursday.