
What happened
A proposed class-action filed November 14, 2023 alleges UnitedHealth and subsidiary NaviHealth used nH Predict, an AI tool the complaint says has a 90% error rate, to deny post-acute care to elderly Medicare Advantage patients. Two families say the denials cost them over $220,000 combined.
Why it matters
The complaint argues UnitedHealth knew of the tool's error rate and kept using it because most patients would not challenge denials, leaving alleged wrongful coverage cuts uncorrected.
What to watch
A federal magistrate judge has ordered UnitedHealth to produce documentation about nH Predict's role, and discovery remains ongoing as of 2026, so the case hinges on what those records show about the tool's link to actual coverage denials.
WHO IT HITSMedicare Advantage patients and their families face the direct consequences of AI-assisted coverage denials, while case managers at insurers and care-management vendors may see their performance measured against algorithmic projections rather than patient needs.
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The lawsuit, filed in the US District Court for the District of Minnesota, centers on how NaviHealth case managers fed patient data into nH Predict and how the model's projected discharge dates were used. According to former employees cited in investigative reporting by Stat, the algorithm does not fully account for comorbidities or complications that emerge mid-stay, such as pneumonia, which can significantly extend recovery time.
The complaint also points to internal pressure on staff. In 2022, NaviHealth reportedly required case managers to keep patient stays within 3% of nH Predict's projection, and by 2023 that margin had tightened to 1%. Former case manager and occupational therapist Amber Lynch told investigators the approach "takes the dignity out of the patient." This context may support the plaintiffs' argument that the tool's influence extended beyond a mere advisory role, an inference the court will likely weigh as discovery proceeds.
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