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Weekly Update: UnitedHealth sued by shareholders | Rite Aid bankrupt again | 19 states sue HHS | Insurance company kickbacks

News You Need to Know Today
Weekly Update: UnitedHealth sued by shareholders | Rite Aid bankrupt again | 19 states sue HHS | Insurance company kickbacks
Sunday, May 11, 2025
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This Week’s News

UnitedHealth sued by shareholders over concealing fallout of CEO's murder

In a lawsuit, plaintiffs allege the company changed course from a long-standing policy of denying medical claims, hiding from investors its impact on profits. The insurer denies any wrongdoing and vowed to defend itself in court. 

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UnitedHealth Group - 2
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UnitedHealth sued by shareholders over concealing fallout of CEO's murder

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UnitedHealth Group - 2
In a lawsuit, plaintiffs allege the company changed course from a long-standing policy of denying medical claims, hiding from investors its impact on profits. The insurer denies any wrongdoing and vowed to defend itself in court. 
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FDA rolls out AI across all departments, hires new leadership

The agency said all of its centers will be fully integrated by June 30, following the success of an early pilot where generative AI supported scientific reviews. 

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U.S. FDA Sign
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FDA rolls out AI across all departments, hires new leadership

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U.S. FDA Sign
The agency said all of its centers will be fully integrated by June 30, following the success of an early pilot where generative AI supported scientific reviews. 
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Rite Aid seeking buyout as it files for bankruptcy—again

For the second time in less than two years, the struggling retail pharmacy chain has filed for Chapter 11 bankruptcy protection, seeking buyers as it prepares for store closures.

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Rite Aid closing stores bankruptcy
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Rite Aid seeking buyout as it files for bankruptcy—again

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Rite Aid closing stores bankruptcy
For the second time in less than two years, the struggling retail pharmacy chain has filed for Chapter 11 bankruptcy protection, seeking buyers as it prepares for store closures.
READ MORE >

Republicans in Congress back off proposal to cut Medicaid

House Speaker Mike Johnson confirmed on Tuesday that Medicaid cuts would be excluded from an upcoming spending bill, as both President Donald Trump and other Republicans in Congress opposed any reduction to funding. 

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Congress in Washington, D.C., is working on legislation to possibly expand Medicare coverage payments for phjysicians.
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Republicans in Congress back off proposal to cut Medicaid

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Congress in Washington, D.C., is working on legislation to possibly expand Medicare coverage payments for phjysicians.
House Speaker Mike Johnson confirmed on Tuesday that Medicaid cuts would be excluded from an upcoming spending bill, as both President Donald Trump and other Republicans in Congress opposed any reduction to funding. 
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Report: Former TV writer exploiting ACA to sell bare-bones insurance plans

Bloomberg writes about a company, Quick Health, run by a former comedy writer, who through a loophole in the law is accused of "hiring" members for fake jobs to enroll them in junk insurance policies.

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TV
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Report: Former TV writer exploiting ACA to sell bare-bones insurance plans

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TV
Bloomberg writes about a company, Quick Health, run by a former comedy writer, who through a loophole in the law is accused of "hiring" members for fake jobs to enroll them in junk insurance policies.
READ MORE >

19-state coalition sues HHS over restructuring, mass firings

The states argue the Department of Health and Human Services is failing to perform basic functions, in violation of the Constitution, as the agency and its programs are authorized by Congress. 

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Gavin Newsom
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19-state coalition sues HHS over restructuring, mass firings

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Gavin Newsom
The states argue the Department of Health and Human Services is failing to perform basic functions, in violation of the Constitution, as the agency and its programs are authorized by Congress. 
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Florida hospitals sue nonprofit over ‘pay-to-play’ safety rankings

Five Tenet Healthcare hospitals are suing the Leapfrog Group, accusing the organization of pressuring hospitals to share internal data in exchange for higher scores in its annual safety rankings. The watchdog outright denies the claim. 

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Florida hospitals sue nonprofit over ‘pay-to-play’ safety rankings

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Five Tenet Healthcare hospitals are suing the Leapfrog Group, accusing the organization of pressuring hospitals to share internal data in exchange for higher scores in its annual safety rankings. The watchdog outright denies the claim. 
READ MORE >

Michigan sues PBMs, alleging unlawful collusion created ‘pharmacy deserts'

State Attorney General Dana Nessel is suing Express Scripts and Prime Therapeutics, accusing the two PBMs of manipulating rebate pricing, "crippling small, independent pharmacies and restricting access to lifesaving medications in the process."

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Prescription drugs pharmacy law
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Michigan sues PBMs, alleging unlawful collusion created ‘pharmacy deserts'

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Prescription drugs pharmacy law
State Attorney General Dana Nessel is suing Express Scripts and Prime Therapeutics, accusing the two PBMs of manipulating rebate pricing, "crippling small, independent pharmacies and restricting access to lifesaving medications in the process."
READ MORE >

Nurse charged with severely injuring several babies on NICU ward

Erin Strotman, 26, has been charged in a 12-count indictment for incidents of alleged neglect and abuse. Her license to practice nursing has also been suspended, pending trial. 

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Nurse in Handcuffs
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Nurse charged with severely injuring several babies on NICU ward

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Nurse in Handcuffs
Erin Strotman, 26, has been charged in a 12-count indictment for incidents of alleged neglect and abuse. Her license to practice nursing has also been suspended, pending trial. 
READ MORE >

DOJ sues Aetna, Humana and Elevance for allegedly paying illegal kickbacks

The three insurance giants are accused of conspiring with brokers to enroll profitable patients in Medicare Advantage plans, in exchange for "hundreds of millions" in kickbacks.

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Humana
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DOJ sues Aetna, Humana and Elevance for allegedly paying illegal kickbacks

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Humana
The three insurance giants are accused of conspiring with brokers to enroll profitable patients in Medicare Advantage plans, in exchange for "hundreds of millions" in kickbacks.
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