Texas Attorney General Ken Paxton is probing UnitedHealth Group Inc (NYSE: UNH) over accusations of unlawful and deceitful methods that allegedly block residents from receiving essential medical care.

Investigating Unlawful Healthcare Practices

The investigation centers on numerous reports that the health insurer mismanaged insurance benefits and patient-care choices.

Among the allegations, authorities claim the company improperly incentivized or "bribed" nursing homes to delay hospitalizing individuals who urgently needed advanced medical care.

In one specific case outlined in the reports, a Texas patient successfully secured prior authorization from the insurer for a scheduled procedure at an Austin surgery center.

However, following the operation, the insurance provider reversed its decision and withdrew the clearance. This abrupt reversal ultimately burdened the patient with a massive, unexpected medical bill.

Corporate Interference in Medical Decisions

State officials also suspect the insurer's routine coverage determinations cross the line into the corporate practice of medicine.

By overriding the expert medical judgment of treating physicians and directly dictating patient care, the company reportedly delays crucial treatments.

Officials warn that extending the wait time for necessary medical interventions significantly increases the danger that care will arrive too late, thereby harming patients.

"Alarming reports keep piling up about how United treats Texas consumers," said Attorney General Paxton. "I will not tolerate any insurance company putting illegal corporate greed over the people of Texas."

Lawsuit Alleges Medicare Fraud

In August, some shareholders filed a derivative action against the current and former leadership of UnitedHealth.

The suit alleges catastrophic corporate governance breaches from September 2021 through July 2025, asserting that executive misconduct generated artificial earnings growth.

MarketDash reached out to UnitedHealth for comment on the story and is awaiting a response.

UNH Price Action: UnitedHealth Group shares were down 1.18% at $374.13 at the time of publication on Tuesday, according to market data.