UnitedHealth Group’s stock plummeted on Friday after reports emerged that the Department of Justice is investigating its Medicare Advantage insurance business. The investigation, first reported by the Wall Street Journal, looks into how UnitedHealth records diagnoses to boost payments from the Centers for Medicare and Medicaid Services (CMS). In a statement, UnitedHealth denied the allegations, claiming it was not aware of any new activity by the DOJ.
This news comes as no surprise, given the company’s struggles in recent months. Last year, UnitedHealth faced a major cybersecurity attack that affected over 190 million people. The company has also been scrutinized for its potential breakup and faced criticism following the death of its top insurance executive, Brian Thompson.
The DOJ’s investigation adds to the pressure on the company’s $460 billion market cap, which has been declining amid these challenges. UnitedHealth’s growth prospects have shifted significantly from previous years, when it was seen as a favorite to become the first trillion-dollar healthcare company.
Source: https://finance.yahoo.com/news/unitedhealth-group-stock-plummets-on-doj-investigation-report-143129320.html