MARYLAND - Maryland Attorney General Anthony G. Brown has sued United Healthcare and its subsidiary Optum, alleging the companies provided a defective computer system for Maryland Medicaid’s behavioral health program.
According to the lawsuit, the system crashed when it launched in 2020, forcing the state to take it offline for eight months. The failure allegedly caused incorrect payments, denied legitimate claims and allowed millions of dollars in fraudulent billing.
The state paid Optum $126.9 million under a contract to administer behavioral health claims. Brown’s office says the system’s failures cost Maryland taxpayers tens of millions of dollars.
The lawsuit, filed in Baltimore City Circuit Court, alleges violations of Maryland’s False Claims Act and seeks up to $380 million in damages, along with additional claims for breach of contract and intentional misrepresentation.
