UnitedHealth is seeking to add Amedisys to Optum, its subsidiary that provides care as well as pharmacy and technology services.

The Justice Department on Tuesday sued to block UnitedHealth Group’s $3.3 billion acquisition of Amedisys, alleging the deal would give the health-industry giant too much power over the market for home health and hospice services.

The U.S. Justice Department and four states sued Tuesday to block UnitedHealth Group’s proposed $3.3 billion acquisition of Amedisys, a Louisiana-based home health company that would further United’s push into the home care and hospice markets.

UnitedHealth Group's $3.3 billion acquisition of Amedisys, the largest M&A deal for a Minnesota company in 2023, is being targeted by antitrust regulators who say the merger would hurt competition in the home health care sector.