Wyden, Warren Probe UnitedHealth Over Alleged Nursing-Home Bonus Scheme

U.S. Senators Ron Wyden of Oregon and Elizabeth Warren of Massachusetts have opened a formal investigation into UnitedHealth Group after reports that the insurer paid nursing homes undisclosed bonuses to curb hospital transfers of frail residents enrolled in its Institutional Special Needs Plans. In an August 6 letter to UnitedHealth Chief Executive Officer Stephen Hemsley, the senators demanded detailed records on the incentive program, hospitalization policies and marketing practices, giving the company until September 8 to respond. The lawmakers cited a May investigation by The Guardian that alleged some residents faced delays in medically necessary hospital care and were encouraged to sign do-not-resuscitate orders. UnitedHealth said it has received the letter, maintains that its I-SNP model benefits seniors, and noted that the U.S. Department of Justice previously reviewed the allegations without finding wrongdoing. The insurer is already cooperating with a separate DOJ probe into its Medicare operations and last month lowered its profit outlook while pledging operational reforms.