UnitedHealth Group (UNH, Financials) shares fell $43.74, or 8.7%, to $458.68 as of 10:51 a.m. ET Friday after The Wall Street Journal reported that the U.S. Department of Justice launched a civil fraud investigation into the company's Medicare Advantage billing practices.
According to the article, the examination is on whether UnitedHealth entered dubious diagnosis into patient medical records in order to guarantee more payments for its Medicare Advantage programs. The U.S. Department of Health and Human Services' Office of Inspector General is also involved in the probe.
UnitedHealth contested The Wall Street Journal's reporting, claiming it to be erroneous information and declaring any implication of fraud to be "outrageous and false."
Regulatory attention on the corporation is amplifying. The Justice Department began an antitrust investigation into UnitedHealth in February 2024. The FDA sued in November 2024 to stop the $3.3 billion purchase by the corporation of home health provider Amedisys (AMED, Financials).
UnitedHealth, the largest U.S. health insurer by revenue, manages a large percentage of Medicare Advantage plans, a fast-growing healthcare market. The Justice Department's latest inquiry raises issues about regulatory pressure on the sector, which might affect Medicare Advantage.
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