New York State — UnitedHealth Group, one of the largest providers of home health and hospice services for seniors, may soon acquire rival Amedisys.
On Tuesday, New York Attorney General Letitia James joined three attorneys general and the U.S. Department of Justice in filing a lawsuit against the company's merger.
The lawsuit alleges that the acquisition violates antitrust laws by eliminating competition and will result in lower quality of care and higher prices for patients and their families. He added that nurses and other medical professionals could see their pay decrease if the deal goes through.
“If United Airlines were to acquire Amedisys, it would limit how seniors receive care and allow United Airlines to raise prices and cut corners without fear of losing customers. We have always worked hard to prevent harmful and damaging mergers, and we will continue to take action to protect vulnerable seniors and the thousands of workers who care for them. ” said Attorney General James.
In early 2024, a subsidiary of UnitedHealth Group became aware of a cyberattack on its payment processing system, leaving many hospitals unable to accept payments. UnitedHealth was forced to pay a $20 million ransom to get its systems back online.
As many as 100 million Americans had their data exposed in the attack. Customers affected by this incident began receiving notifications in July 2024. UnitedHealth's merger with its biggest competitor could expose more Americans to the same risks.
The Attorney General and the Department of Justice are seeking a court order blocking UnitedHealth's acquisition of Amedisys and a $13 million civil penalty for failing to respond to records requests related to the merger approval process.
