They F%$# Their Employees Too

There are now allegations that UnitedHealth has been stealing from former employees 401(k) accounts.

Gee, they f%$# their customers too.  This is not a surprise.

Add two more lawsuits to the pile facing UnitedHealth Group.

America’s largest insurer is facing two purported class-action suits from former employees alleging the company misused their 401(k) contributions.

The latest suit, filed Wednesday in federal court in Minnesota, claims that UnitedHealth Group held on to employees’ money after they left and used it to improperly lower its own costs, the plaintiffs argue. The move is a breach of UHG’s duty to act in the best interests of its retirement plan participants—ie, the current and former workers invested in its 401(k) plan. 

As the suit describes it, UHG, which took in $400 billion in revenue last year, has a fairly standard corporate 401(k) plan, matching up to 6% of employees’ pay under certain conditions. However, employees forfeit the money UHG contributed to their plan if they leave before completing two years with the company. 

Between 2019 and 2023, UHG used $19 million in forfeited funds to reduce its own matching contributions, instead of using it to reduce administrative fees for the 401(k) accounts. That was a breach of UHG’s fiduciary duty to plan participants, the plaintiff argues. 

I'm thinking that someone needs to play video games with senior management.

Super Mario Brothers anyone?