LOS ANGELES, March 31, 2026 (GLOBE NEWSWIRE) -- In a closely watched UnitedHealthcare Medicare Advantage fraud case, the Ninth Circuit Court of Appeals will soon decide whether United—the nation’s largest for-profit Medicare Advantage provider—can continue to evade liability under a controversial and sweeping “preemption” defense.
At issue is a national class action filed in the U.S. District Court for the Central District of California (Case No. 8:23-cv-02303), Estate of Bibi Ahmad v. UnitedHealth Group Inc., alleging that UnitedHealth used misleading advertising and deceptive sales tactics to push vulnerable seniors into abandoning Original Medicare for corporate-run Medicare Advantage plans. The suit alleges that the plans were structured not to expand care, but to cut costs and deny critical treatment.
In a ruling dismissing the case on preemption grounds, U.S. District Judge Monica Ramirez Almadani nonetheless emphasized the severity of the claims: “This Court does not minimize the seriousness of the allegations in the Complaint or the grave issues in addressing vulnerable populations’ access to healthcare.”
The appeal explains that dismissal was improper, particularly in light of the U.S. Supreme Court’s 2024 ruling overturning the Chevron doctrine. “With Chevron gone, courts are no longer required to defer to CMS regulations that override consumer protections granted by Congress,” said lead counsel Gloria Juarez. “The Medicare Act has never expressly preempted state law protections. Preemption has become a get-out-of-jail-free card for gorilla-sized healthcare corporations—especially in elder abuse and fraud contexts.”
The suit asserts that UnitedHealth ran a decade-long campaign of fraud, using emails, direct marketing, and advertising to misrepresent that its Medicare Advantage plans were just an extension of Original Medicare, when in fact seniors were required to surrender their Medicare entirely.
One such senior, 96-year-old cancer patient D.D., was misled into switching plans and subsequently denied access to her long-time cancer doctors. Her treatment was delayed, she was sued by providers, and UnitedHealthcare denied her claims while reporting her enrollment for CMS bonuses. The complaint brings claims under California’s False Advertising Law, Unfair Competition Law, and Consumers Legal Remedies Act.
“We are fighting not just for accountability for what happened to Ms. Ahmad, D.D., and G.L., but to protect other families from unknowingly giving up their Medicare benefits through slick sales pitches and corporate greed,” Juarez said. “Seniors are being driven into bankruptcy while UnitedHealth posted over $22 billion in profits in 2023.”
The Ninth Circuit appeal is expected to address whether UnitedHealth’s reliance on CMS regulatory preemption can shield it from state law liability in light of post-Chevron judicial authority. Plaintiffs seek reinstatement of their claims and class certification, alleging that hundreds of thousands of seniors were affected across the country.
Law Offices of Gloria Juarez
Gloria Juarez, Esq.
Email: gloria@thegjlaw.com
Telephone: 949-288-3402
