Press Releases
Insurance Giant UnitedHealth Predictably Goes Judge Shopping in 5th Circuit Territory After CMS Rating Downgrade
This week, subsidiaries of insurance giant UnitedHealth—which covers 29% of all Medicare Advantage enrollees—sued the Biden-Harris administration over the Centers for Medicare & Medicaid Services’ (CMS) decision to downgrade the insurer’s “star rating” following an evaluation of a customer service call. Government watchdog Accountable.US raised concerns that where the Minnesota-based insurer chose to file their lawsuit seeking an injunction—the Eastern District of Texas under the jurisdiction of the far-right Fifth Circuit Court of Appeals—represents the latest case in a worsening corporate venue shopping crisis.
The intent is clear: set the lawsuit on a path to the Fifth Circuit that is notorious for industry-friendly rulings, including in favor of predatory lenders, discriminatory big banks, and greedy credit card issuers—with Big Pharma likely soon to follow. UnitedHealth has disclosed membership in the corporate-funded U.S. Chamber of Commerce that has filed lawsuits challenging federal regulations in district courts under the Fifth Circuit’s jurisdiction 63 percent of the time since January 2017, a previous Accountable.US analysis found.
The case is now before Trump appointee Judge Jeremy D. Kernodle. An Accountable.US review found Kernodle is a prominent Federalist Society figure who in 2023 took travel, meals, and lodging from the right-wing Federalist Society and the Scalia Law School, which is also closely linked to right-wing court “architect” Leonard Leo and has been seen as a “an easy pass-through” for donors to influence judges.
After facing federal consequences for apparent poor customer service, UnitedHealth is borrowing the U.S. Chamber’s judge-shopping playbook by taking their grievances to the industry-sympathetic Fifth Circuit. The insurance giant joins predatory lenders, big banks, Big Pharma, and other industries that prefer to plead their case before the MAGA-friendly Fifth Circuit where corporations can do no wrong in pursuit of profit. For its part, the power-grabbing Fifth Circuit doesn’t seem to mind its reputation of rewarding corporate special interests that game the court system at the expense of everyday Americans.”