Ninth Circuit to Decide if UnitedHealth Keeps Preemption Defense in Fraud Case

Lawsuit alleges UnitedHealth misled seniors to abandon Original Medicare for corporate-run Medicare Advantage plans.

Mar. 31, 2026 at 9:33pm

Got story updates? Submit your updates here. ›

In a closely watched case, the Ninth Circuit Court of Appeals will soon decide whether UnitedHealth, the nation's largest for-profit Medicare Advantage provider, can continue to evade liability for alleged fraud under a controversial 'preemption' defense. A national class action lawsuit filed in California accuses UnitedHealth of using misleading advertising and deceptive sales tactics to push vulnerable seniors into abandoning Original Medicare for its corporate-run Medicare Advantage plans, which the suit claims were structured to cut costs and deny critical treatment.

Why it matters

The case could have major implications for the future of Medicare Advantage plans and whether healthcare corporations can continue to use preemption as a 'get-out-of-jail-free card' to avoid liability for fraud and elder abuse. The outcome could impact hundreds of thousands of seniors nationwide who were allegedly misled into surrendering their Medicare benefits.

The details

The lawsuit, Estate of Bibi Ahmad v. UnitedHealth Group Inc., alleges 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 give up their Medicare entirely. One senior, 96-year-old cancer patient D.D., was allegedly misled into switching plans and subsequently denied access to her long-time cancer doctors, leading to delayed treatment and financial hardship.

  • The national class action was filed in the U.S. District Court for the Central District of California in 2023.
  • The Ninth Circuit Court of Appeals is expected to rule on the case soon.

The players

UnitedHealth Group Inc.

The nation's largest for-profit Medicare Advantage provider, accused of using misleading advertising and deceptive sales tactics to push seniors into its corporate-run Medicare Advantage plans.

Estate of Bibi Ahmad

The plaintiff in the national class action lawsuit against UnitedHealth, alleging the company's fraud harmed vulnerable seniors.

Gloria Juarez

The lead counsel representing the plaintiffs in the appeal to the Ninth Circuit Court of Appeals.

Monica Ramirez Almadani

The U.S. District Judge who initially dismissed the case against UnitedHealth on preemption grounds, though acknowledging the 'seriousness of the allegations.'

Got photos? Submit your photos here. ›

What they’re saying

“This Court does not minimize the seriousness of the allegations in the Complaint or the grave issues in addressing vulnerable populations' access to healthcare.”

— Monica Ramirez Almadani, U.S. District Judge

“With Chevron gone, courts are no longer required to defer to CMS regulations that override consumer protections granted by Congress. 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.”

— Gloria Juarez, Lead Counsel

“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. Seniors are being driven into bankruptcy while UnitedHealth posted over $22 billion in profits in 2023.”

— Gloria Juarez, Lead Counsel

What’s next

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 the U.S. Supreme Court's 2024 ruling overturning the Chevron doctrine. Plaintiffs seek reinstatement of their claims and class certification.

The takeaway

This case highlights the ongoing battle over the use of preemption as a legal shield by large healthcare corporations accused of defrauding vulnerable seniors. The outcome could have significant implications for the future of Medicare Advantage plans and the ability of seniors to seek recourse for alleged corporate misconduct.