Home » Health » UnitedHealth and Amedisys Merger Completes Post-DOJ Settlement, Set to Close This title indicates that the merger between UnitedHealth and Amedisys has reached a significant milestone by completing the settlement process with the Department of Justice, s

UnitedHealth and Amedisys Merger Completes Post-DOJ Settlement, Set to Close This title indicates that the merger between UnitedHealth and Amedisys has reached a significant milestone by completing the settlement process with the Department of Justice, s

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UnitedHealth Group Under Fire for Alleged Medicare Advantage Billing schemes & Self-Dealing

By [Your Name/Archyde Staff]

UnitedHealth Group, the nation’s largest healthcare company, is facing mounting scrutiny over its aggressive expansion into home health services and its complex financial relationships with its own provider subsidiaries. A growing body of evidence suggests the company is leveraging these strategies to inflate Medicare Advantage (MA) payments and potentially prioritize profits over patient care.

Recent investigations and reports reveal a pattern of practices that critics say exploit loopholes within the Medicare Advantage program, allowing UnitedHealth to generate billions in questionable revenue. At the heart of the controversy lies the company’s increasing reliance on in-home health assessments and a business model that effectively allows it to “pay itself” for healthcare services.

A Closed Loop of Revenue

UnitedHealth’s strategy centers on directing its Medicare Advantage members towards care delivered by its own network of providers – including home health agencies it owns. This creates a closed loop where the insurance arm of the company reimburses its provider subsidiaries, generating significant revenue. In 2024 alone, these “intercompany eliminations” – payments from UnitedHealth to its subsidiaries – reached $150.9 million, a year-over-year increase of 11%.

This structure isn’t just profitable; it’s strategically advantageous. Unlike its insurance division, UnitedHealth’s provider businesses aren’t subject to profit caps, allowing for potentially unlimited earnings.

“By nudging its members towards in-house and low-cost settings, UnitedHealth can curb health benefits spending while reimbursing its provider subsidiaries for providing that care – essentially paying itself for the service,” explains analysis of the company’s practices.

Upcoding and the Pursuit of Risk Scores

The expansion of in-home health assessments is proving particularly lucrative, and controversial. these assessments, conducted in members’ homes, are used to determine “risk scores” – a key factor in how much the government reimburses insurers under the Medicare Advantage program. Higher risk scores, reflecting sicker patients, translate to higher payments.

Though, investigations suggest UnitedHealth is incentivized to maximize these risk scores, even if it means exaggerating the severity of members’ illnesses – a practice known as “upcoding.” A recent study found that UnitedHealth generated a staggering $14 billion in MA overpayments through upcoding in 2021, far exceeding any other payer in the program.

data indicates that home health assessments contribute to an average 7% increase in risk scores. The Senate Judiciary Committee has already launched an inquiry into UnitedHealth’s at-home health risk assessment program, prompted by findings from the HHS Office of the Inspector General that the company was receiving disproportionately high payments for diagnoses made only during these in-home reviews.

Department of Justice Inquiry

The scrutiny has escalated to a formal investigation by the Department of Justice into UnitedHealth’s Medicare billing practices. While UnitedHealth denies allegations of inappropriate coding and claims to support greater federal oversight, the DOJ investigation signals the seriousness of the concerns.

In a recent statement, a UnitedHealth spokesperson emphasized the company’s commitment to “high-quality, compassionate care” and described home health as a “vital part of our value-based care approach.” Though, critics remain skeptical, arguing that the company’s financial incentives create a conflict of interest.

What’s Next?

The outcome of the DOJ investigation and ongoing Senate inquiry will be crucial in determining the future of UnitedHealth’s Medicare Advantage strategy. The case highlights the challenges of regulating a rapidly evolving healthcare landscape and the potential for large corporations to exploit loopholes for financial gain. Archyde will continue to follow this developing story and provide updates as they become available.


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How might the asset divestiture mandated by the DOJ settlement impact the competitive landscape of home healthcare in the affected markets?

UnitedHealth and amedisys Merger Completes Post-DOJ Settlement, Set to Close

The long-awaited merger between UnitedHealth Group (UNH) and Amedisys (AMED) has cleared a major hurdle, completing its settlement agreement with the Department of Justice (DOJ). This paves the way for the final closure of the deal, a notable growth in the evolving landscape of home healthcare and managed care. This article details the implications of this settlement, the merger’s structure, and what it means for patients, providers, and the future of healthcare delivery.

Understanding the DOJ’s Concerns & Settlement Details

The DOJ’s initial opposition to the merger centered around concerns that it would reduce competition in the home healthcare services market, notably in rural areas. Specifically, the DOJ worried that UnitedHealth, already a dominant player through its Optum health division, would leverage Amedisys’s extensive network to stifle competition and possibly raise prices.

The settlement requires UnitedHealth to divest certain Amedisys home health and hospice assets. While specific details of the divestiture remain confidential, it’s understood to involve agencies in markets where overlap was moast significant.This divestiture is designed to maintain competitive balance and ensure continued access to affordable home healthcare services. Key terms of the settlement include:

Asset Divestiture: UnitedHealth must sell specific Amedisys agencies.

Autonomous Monitoring: A compliance monitor will oversee UnitedHealth’s adherence to the settlement terms.

Reporting Requirements: UnitedHealth will be required to regularly report data to the DOJ regarding its home healthcare operations.

Merger Structure and Financial Implications

The original agreement, announced in September 2023, valued Amedisys at approximately $3.3 billion. UnitedHealth intends to integrate Amedisys into its Optum Health segment, which focuses on providing value-based care and healthcare services.

Here’s a breakdown of the financial aspects:

Purchase Price: $3.3 billion (subject to adjustments).

Financing: UnitedHealth will finance the acquisition through a combination of cash and debt.

Synergies: UnitedHealth anticipates significant cost synergies through the integration of Amedisys’s operations, estimated to be in the hundreds of millions of dollars annually.

Stock Performance: As of today, August 9, 2025, UnitedHealth Group (UNH) stock is being closely watched by investors, with analysts predicting a positive long-term impact from the merger. (Refer to BörsenNEWS.de for current stock information: https://www.boersennews.de/markt/aktien/detail/us91324p1021/)

Impact on Home Healthcare Landscape

This merger is poised to reshape the home healthcare industry. Amedisys is one of the largest providers of home health, hospice, and personal care services in the United States. Combining its capabilities with Optum Health’s resources and technology creates a powerful force.

Increased Scale: The combined entity will have a substantially larger footprint in the home healthcare market.

Technological Advancements: optum health’s investment in technology, including telehealth and remote patient monitoring, is expected to enhance Amedisys’s service offerings.

Value-Based Care: The merger aligns with the growing trend towards value-based care models, which emphasize quality and outcomes over volume.

Potential for Innovation: The integration could spur innovation in areas such as chronic disease management and post-acute care.

What This Means for Patients

Patients stand to benefit from the merger in several ways:

Improved Access to Care: The expanded network could improve access to home healthcare services,particularly in underserved areas.

Enhanced Care Coordination: Integration with Optum Health’s broader healthcare ecosystem could lead to better care coordination and communication.

Advanced Technologies: Patients may have access to cutting-edge technologies, such as remote monitoring devices, to help manage their health conditions.

Focus on Preventative Care: The emphasis on value-based care could lead to a greater focus on preventative care and chronic disease management.

Implications for Healthcare Providers

The merger will also have implications for healthcare providers:

Increased Competition: Independent home healthcare agencies may face increased competition from the combined UnitedHealth-Amedisys entity.

Partnership Opportunities: Opportunities may arise for partnerships with the larger organization.

Shift Towards Value-Based Care: Providers will need to adapt to the growing emphasis on

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