nH Predict post-acute care algorithm accused of having a 90 percent error rate

Occurred: November 2023

A US lawsuit accuses the UnitedHealth Group of deploying an AI-powered algorithm that unfairly denies post-acute care claims for Medicare Advantage patients 90 percent of the time.

What happened

According to a lawsuit brought by the Clarkson Law Firm, when patients appeal denials meted out by nH Predict to federal administrative law judges, about 90 percent were reversed.

The use of nH Predict coincides with a significant increase in claim denials, with  UnitedHealthcare's denials for post-acute care reportedly increasing by 227 percent in 2022 alone. 

Lawyers for UnitedHealth argued that the lawsuit should be dropped because plaintiffs failed to complete Medicare’s appeals process and that their grievances are with the federal government and not UnitedHealth.

Why it happened

Insurers are accused of pressuring case managers to adhere to the algorithm's recommendations, even against the advice of clinicians and families. 

The use of such algorithms is estimated to automate 50-75 percent of human labour involved in claims processing.

What it means

The high error rate and subsequent legal challenges raise serious concerns about the use of AI by UnitedHealth Group and in the healthcare more generally, and led to class-action lawsuits against UnitedHealthcare and other insurers alleging violations of patient contracts and state insurance laws.

The controversy also highlights the need for greater transparency, accountability and human oversight in the use of AI algorithms in healthcare, particularly when they impact vulnerable populations like the elderly and disabled.

System 🤖

Operator:
Developer: Optum; UnitedHealth Group
Country: USA
Sector: Health
Purpose: Predict post-acute care needs
Technology: Prediction algorithm; Machine learning
Issue: Accuracy/reliability; Transparency