The US government has dealt another blow to UnitedHealth Group Inc., one of the largest Medicare Advantage plan providers, after the Centers for Medicare and Medicaid Services (CMS) announced a significant expansion of its auditing efforts. The move aims to “crush fraud, waste and abuse” in healthcare programs.
According to CMS, nearly 2,000 new employees will be hired to audit all eligible Medicare Advantage plans from 2018 to 2024. This expansion is part of the Trump administration’s effort to tackle fraudulent activities in the healthcare sector.
UnitedHealth investors had already faced challenges due to the increasing scrutiny of Medicare Advantage plan providers. The expanded auditing efforts are expected to further strain the company, which operates under the majority of these plans.
The CMS audit will cover all payment years from 2018 through 2024, and its impact on the industry is yet to be seen. However, the news has sent shockwaves throughout the healthcare sector, as other plan providers also face similar challenges.
Source: https://www.marketwatch.com/story/unitedhealth-takes-another-gut-punch-from-government-as-cms-boosts-audit-team-1d65ddfd