Maryland Sues Optum for $126 Million Over Allegedly Defective Medicaid Behavioral Health Claims System
Maryland filed suit against Optum and UnitedHealth Group alleging Optum collected over $126 million while operating a behavioral health Medicaid claims system the state contends was never fully functional during the five-year contract period. The lawsuit asserts fraud and breach of contract related to the system's performance failures. The timing of the suit is current as of September 2026, though the underlying contract issues span multiple years. This represents significant state-level enforcement against a major managed care and technology vendor, potentially signaling increased scrutiny of Medicaid administrative service contracts and vendor performance accountability.
The lawsuit demonstrates growing state willingness to pursue major fraud claims against large Medicaid contractors for system failures, creating potential compliance and contracting precedent for behavioral health technology vendors and MCOs operating claims processing systems.
Behavioral Health · Managed Care
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