Dive Brief:

• Texas Attorney General Ken Paxton has launched an investigation into UnitedHealth, alleging that the healthcare behemoth engages in “deceptive and unlawful practices” that prevent Texans from getting medically necessary care.
• That includes paying nursing homes to keep its members out of the hospital, according to a press release from Paxton’s office on Monday announcing the investigation.
• Paxton said he has sent civil investigative demands to UnitedHealth to get evidence of potential violations of the Deceptive Trade Practices Act and other Texas laws. UnitedHealth did not respond to a request for comment.

Dive Insight:

The new investigation builds onto UnitedHealth’s existing regulatory woes. In recent years, the Minnesota-based healthcare giant has been subjected to probes from the Department of Justice, federal watchdogs and lawmakers on both sides of the aisle over its Medicare billing practices, nursing home care denials and other topics.

The information that has come to light to date has largely been unflattering for UnitedHealth, which has remade its corporate structure, rejigged leadership, embarked on internal review and pledged greater transparency as it tries to improve its public image.

Now, UnitedHealth’s rehabilitation plan faces a wrinkle in Texas, with Paxton, the state’s firebrand attorney general and Republican candidate for Senate, accusing the company of overriding physicians’ medical judgment to benefit its own bottom line.

According to Paxton, in one case UnitedHealth approved a Texas patient’s treatment at an Austin surgical center but withdrew approval after the procedure was completed, leaving the patient with a hefty bill.

“Alarming reports keep piling up about how United treats Texas consumers,” Paxton said in a statement. “I will not tolerate any insurance company putting illegal corporate greed over the people of Texas.”

It’s Paxton’s latest crackdown against a health insurer over allegedly improper care denials and delays. Late last month, Paxton said he was launching an investigation into Blue Cross and Blue Shield of Texas and its parent company, Health Care Service Corporation, over the issue.

The attorney general is stepping up oversight as voters increasingly clamor for public officials to crack down on healthcare corporations like insurers, arguing that they put profit motivations above patients’ ability to access care. Paxton currently faces a tight Senate race against Democrat James Talarico, who is leading in the polls.