UnitedHealth Group is facing a federal investigation into civil fraud concerns related to its Medicare Advantage plans. The Department of Justice has launched an inquiry into how the company records diagnoses that lead to extra payments. As a result, shares of the health care giant dropped 1.7% on Thursday morning.
The company has started complying with requests from federal investigators and is cooperating fully with the investigation. UnitedHealthcare covers over 8 million people through its Medicare Advantage plans, making it one of the largest providers in the US. The business has faced pressure in recent quarters due to rising care costs and rate cuts.
UnitedHealth Group was unaware of any new activity when the Wall Street Journal reported on the investigation earlier this year. However, after reviewing media reports, the company reached out to the Justice Department and initiated its compliance efforts.
Source: https://www.cbsnews.com/news/united-healthcare-federal-investigation-civil-fraud