Episode Transcript
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Speaker 1 (00:00):
All right, let's jump
into another deep dive.
Today it's UnitedHealth Group.
They're well, they're kind of abig deal in US healthcare and
it looks like the Department ofJustice is looking into them.
We've got articles here from,let's see, investingcom,
barron's MarketWatch, reuters,the Wall Street Journal and even
StreetInsidercom Lots to unpack.
So we're going to figure outwhat's actually going on, why it
(00:21):
matters to everyone and whatthis might mean for the future
of health care.
Right.
Speaker 2 (00:27):
Yeah, definitely a
lot going on, and it can be a
little confusing if you're notsuper familiar with how health
care works in America.
Speaker 1 (00:32):
That's true.
So okay, let's break it down.
The VOJ is investigatingUnitedHealth's their Medicare
billing and specifically whetherthey were overbilling Medicare
like on purpose.
Speaker 2 (00:43):
Basically yeah,
specifically whether they were
overbilling Medicare like onpurpose.
Basically, yeah.
Speaker 1 (00:51):
The question is if
they were, you know, making more
money at the expense oftaxpayers and maybe, even more
importantly, the people actuallyusing Medicare and this
investigation.
It gets even more interestingbecause it's really focused on
UnitedHealth's MedicareAdvantage plans.
Before we get too far into that, can you give us a quick
rundown on Medicare AdvantageLike what is it and how is it
different from regular Medicare?
Speaker 2 (01:05):
Sure.
So Medicare Advantage plans.
They're offered by privateinsurance companies like
UnitedHealth and Distance.
They're an alternative to the.
You know the government runMedicare.
They usually have some extrabenefits, like vision or dental,
that you don't get with thetraditional Medicare.
Speaker 1 (01:20):
Oh, ok, so kind of
like choosing between, like, a
basic package and a premiumpackage, with the premium one
having all the bells andwhistles.
Speaker 2 (01:26):
Yeah, that's a good
way to think about it, but
here's where it gets tricky.
The DOJ is really interested indiagnoses that might have been,
I guess you could say, inflatedwithin these Medicare Advantage
plans to get more money fromMedicare.
Speaker 1 (01:41):
Inflated.
What does that even mean?
How can you inflate?
A diagnosis?
Speaker 2 (01:45):
Well, one way is
through upcoding.
Think of it like billing codesare like a menu right, Each code
is for a specific service orprocedure with a set price.
Upcoding is when they well,they basically assign a more
serious diagnosis than is reallythere, so they can get more
money back from Medicare.
Speaker 1 (02:01):
So like ordering a
salad but getting charged for a
steak dinner.
Speaker 2 (02:04):
Exactly.
But here's the thing Provingintent is crucial.
The DOJ wants to know if thiswas, like you know, a deliberate
attempt to cheat the system,not just some honest mistakes.
Speaker 1 (02:14):
And this is where the
Wall Street Journal's reporting
comes in.
They broke the story and thatsaid that the DOJ is looking
into whether UnitedHealth likeintentionally added diagnoses to
patients' records, to you know,to make it seem like they
needed more expensive treatment,so Medicare would pay more.
Speaker 2 (02:29):
Right, and that's a
big difference.
We're not talking about simplebilling errors.
We're talking about possiblymanipulating the system for
profit.
Speaker 1 (02:37):
And just to add to
this, UnitedHealth Group is huge
.
They're a major player in theMedicare system.
So this investigation, it hasthe potential to be pretty
impactful.
As soon as the news came out,UnitedHealth's stock price
dropped.
Speaker 2 (02:49):
Yeah, that's a
typical reaction Investors they
get worried about financialrisks and reputation damage,
especially with a big companylike UnitedHealth.
A DOJ investigation is seriousstuff.
Speaker 1 (02:59):
Definitely.
If the DOJ finds what they'relooking for, the fallout could
be huge.
Speaker 2 (03:03):
Oh, absolutely.
We could be talking aboutmassive fines, maybe even
billions of dollars.
And then there's the damage totheir reputation, public trust,
all of that which is hard tocome back from.
Speaker 1 (03:12):
It's not just about
money either, right?
This impacts millions ofAmericans in how they access
affordable health care, even ifyou're not following health care
stocks or anything.
This raises some big questionsabout transparency and
accountability in the wholesystem.
Speaker 2 (03:26):
Exactly, and it shows
how important it is to
understand how all of this works.
We need to hold those in poweraccountable.
Speaker 1 (03:32):
Right, ok, so we've
set the scene right.
Unitedhealth, this huge payerin Medicare.
They're under investigation forpotentially fraudulent billing.
The DOJ is trying to figure outif they were intentionally
inflating patient diagnoses justto make more money.
So let's get into the specificsof this investigation and see
what it could mean, you know,for the future of health care.
Speaker 2 (03:53):
Yeah, let's take a
closer look at some of these
potentially inflated diagnoses.
The Wall Street Journal articleit actually dives into a few
examples that the DOJ isscrutinizing.
Speaker 1 (04:02):
OK, let's hear about
those examples and see if they
fit into the big picture.
Speaker 2 (04:05):
So one example they
talked about in the article was
about the billing codes forchronic kidney disease, ckd.
It's you know it's serious andthere are different stages, like
in each stage has its ownbilling code depending on how
severe it is.
Speaker 1 (04:17):
So the worse the CKD,
the more Medicare pays.
Speaker 2 (04:21):
Right, and so what
the DOJ is looking into is
whether United Health was likeupcoding patients basically
saying their CKD was worse thanit really was to get more money.
Speaker 1 (04:30):
Okay, that makes me
wonder like what if a patient
finds out that their medicalrecord says they have CKD, but
they don't think they do?
I mean, is there anything theycan do?
Speaker 2 (04:38):
That's a good
question.
It's a little complicated.
Patients they do have the rightto see their medical records
and like dispute anything theythink is wrong, but proving that
a diagnosis was intentionallyinflated just for billing,
that's really hard to do.
Speaker 1 (04:53):
Yeah, it sounds like
proving intent would be almost
impossible, especially if thecoding is just slightly off.
Speaker 2 (04:59):
Yeah, exactly, and
that's why these investigations
are so important.
It brings this stuff to lightand maybe forces some changes to
happen, system-wide changes.
Speaker 1 (05:07):
Right and the Wall
Street Journal.
They also mentioned the DOJ islooking at how UnitedHealth
coded for diabetes complications.
Speaker 2 (05:14):
Yeah, diabetes,
especially when it causes other
problems like heart disease orvision problems.
Those need constant managementand often the treatments are
pretty expensive.
So the DOJ is looking intowhether UnitedHealth maybe
exaggerated the severity ofthose complications to well to
get more money from Medicare.
Speaker 1 (05:32):
So it seems like
we're seeing a pattern here,
right Multiple areas where theymight have been upcoding to get
bigger reimbursements, and thisisn't even the first time
UnitedHealth has been in trouble, for their billing is it?
Speaker 2 (05:41):
Nope, not at all.
They settled lawsuits beforeover similar stuff.
This new investigation, it kindof makes you think there might
be some deeper problems withinthe company.
For sure, sure.
Speaker 1 (05:49):
So I'm curious what
does this all mean for the
average person on Medicare Like?
Does this investigation affectthem directly?
Speaker 2 (06:00):
Well, practically
speaking, it's too early to say
what the direct impact will be.
But on a bigger scale, thiswhole thing highlights some
weaknesses in a system whereprivate insurance companies have
so much control over publichealth care.
It makes you think aboutoversight, transparency and if
these companies really careabout patients or just their
profits, you know.
Speaker 1 (06:16):
That's a really
important point.
This case.
It really exposes this conflictin our health care system
between making money and takingcare of people.
And this debate.
It's only going to get moreintense as the investigation
goes on.
Speaker 2 (06:28):
This could be the
thing that finally forces us to
have that conversation about,like, restructuring our health
care system and making sure itworks for people, not just
corporations.
Like do we have, in this,government, oversight when
private companies have so muchpower?
These are big questions.
Speaker 1 (06:41):
It's like.
This case is a tiny example ofa much bigger problem.
Right this whole tangle betweenhealth care and profit.
Speaker 2 (06:47):
Exactly, and that's
why it's so important to pay
attention to this, even ifyou're not on Medicare.
What happens with thisinvestigation?
It could change healthcare inthis country.
Speaker 1 (06:55):
Okay.
So to recap, the Department ofJustice is investigating
UnitedHealth Group, looking intowhether they were doing some
shady stuff with their Medicarebilling, specifically with their
Medicare Advantage plans.
The big question is whetherthey intentionally messed with
patient diagnoses to get moremoney from Medicare, and we
talked about how this reallyshows the struggle between
profits and patient care in asystem that's kind of stuck
(07:18):
trying to balance those twothings.
Speaker 2 (07:20):
Right and it's
important to remember, these are
just accusations.
Unitedhealth hasn't been foundguilty of anything yet and, to
be fair, they have said publiclythat they're cooperating with
the investigation.
Speaker 1 (07:29):
That's true.
That's an important point.
It's still unfolding, so weneed to be careful about jumping
to conclusions.
But even if UnitedHealth iscleared, this whole thing has
started a really importantconversation about the role of
these private insurancecompanies in public health care
and, you know, being transparentand accountable in a system
that affects so many people.
So, let's say the DOJ, you knowthey find what they're looking
(07:51):
for.
What happens then?
What are the consequences ifthey prove these allegations?
Speaker 2 (07:55):
Well, things could
get pretty serious.
We could be talking bigfinancial penalties for
UnitedHealth, maybe billions ofdollars in fines, and then their
reputation takes a hit andthat's not easy to fix.
Speaker 1 (08:04):
And beyond
UnitedHealth itself.
Do you think this could have awider impact, like on the whole
health care industry?
Speaker 2 (08:10):
Oh, absolutely.
This whole thing could lead tolike everyone taking a fearful
look at Medicare Advantage plansand how they bill.
We might even see some newrules and regulations to try and
prevent this from happeningagain.
Speaker 1 (08:21):
It sounds like this
case could really be a turning
point, maybe even force somemuch needed changes in how
Medicare Advantage works.
But what about the patientsthemselves?
How can we make sure theirneeds are actually being met in
a system that's well kind ofobsessed with profits?
Speaker 2 (08:36):
That's the big
question, right?
One idea is to move away fromthis fee-for-service model, you
know, where providers get paidfor every single thing they do,
and instead move toward avalue-based care model where
they get rewarded for keepingpatients healthy and avoiding
unnecessary treatments.
Speaker 1 (08:51):
So instead of
focusing on how much they do, we
focus on how well they do it.
That sounds good, but is anyoneactually doing that Like?
Are there any examples of thisvalue-based care in action?
Speaker 2 (09:00):
Actually, yeah, there
are some healthcare systems out
there trying this out and theearly results.
They look promising.
It seems like it could lead tobetter outcomes for patients and
even lower costs overall.
Speaker 1 (09:09):
Well, that's good to
hear.
Sounds like we're heading inthe right direction.
But I imagine a shift like thatit's not going to happen
overnight.
Right, it would take somepretty big systemic changes and,
honestly, a whole new way ofthinking about health care.
Speaker 2 (09:19):
You're right, it's a
complicated issue and there's no
easy fix.
But this investigation it'sgotten people talking and
hopefully it'll push us towardsa health care system that really
does put patients first.
Speaker 1 (09:29):
We've definitely
covered a lot of ground today.
We talked about the specific ofthis DOJ investigation into
UnitedHealth, but also you know,what it means for the future of
health care as a whole.
As we wrap up any funnythoughts, you want to leave our
listeners with what's the onething you hope they take away
from all of this.
Speaker 2 (09:44):
I think the most
important thing is for us to
stay informed and involved inthese discussions about health
care.
We need to ask the toughquestions, demand transparency
and hold our leaders accountablefor creating a system that's
fair, equitable and actuallyworks for everyone.
Speaker 1 (09:58):
That's a great point.
Thanks for joining us on thisdeep dive.
We'll definitely keep followingthis story and let you know
about any major developments,until next time.