The estate of 91 year old Gene Lokken is leading a lawsuit claiming UnitedHealth used flawed algorithms to stop medical coverage for Medicare Advantage enrollees. A Minnesota court filing alleges the company ignored a 90% error rate in its AI model to deny nursing home rehab for elderly patients because only 0.2% of users file appeals to contest the decisions.

More than 90% of these coverage denials are reversed upon internal appeal or before a federal administrative law judge. Lokken's family paid between $12,000 and $14,000 per month out of pocket after the insurer stopped payment despite therapist notes citing reduced mobility. The class action case is currently in the discovery phase.