As United overcharges customers, execs earn tens of millions in stock

Video-  Richard Burke helped create United HealthCare.  He’s now chairman of the board and, according to company records, he’s holding on to $287 million of United stock. So far in 2016, Burke’s United stock has helped pay him millions.  He sold shares in February and May, landing a total of $8 million – a small percentage of the money still available to United’s top director.

“This practice needs to stop,” says U.S. Rep. Garret Graves (R-Louisiana),

The practice the congressman is referring to the overcharging of United customers for prescription medication.

“It’s entirely misleading,” Graves says. “I think it’s unethical, I think it’s dishonest and I think it should be barred.”

Our investigation revealed that United HealthCare, the nation’s largest insurance provider, and its pharmacy benefit manager, Optum, make customers pay a premium on some prescription drugs, charging them more than the actual cost.  Pharmacists call it a “clawback” – United overcharges and claws back the money from the pharmacy and customer.

“This is one of those situations where I think it’s really unfortunate that you have to pass a law to do the right thing,” Graves tells us.  “You shouldn’t have to legislate morality in this case.  But if this is the way that things are going to happen, absolutely – we need to pass a law and provide for transparency here, and let consumers act as consumers and make educated decisions.”

Watch the video or read the story here