UnitedHealth Group has reversed its stance and is now cooperating with a US Department of Justice investigation into its Medicare business. The company initially attacked media reports in May, calling them “deeply irresponsible”. However, after reviewing the media reports, UnitedHealth Group decided to reach out to the Department of Justice.
The DOJ’s criminal health care fraud unit was investigating how UnitedHealth Group deployed doctors and nurses to collect diagnosis data to boost government payments for its privatized Medicare plans. The investigation appears to be centered around allegations that insurers like UnitedHealthcare have inflated their federal payments through gaming of the Medicare system.
Critics argue that this practice boosts corporate profits at the expense of taxpayers, as Medicare pays insurers to provide care for members in the privatized plans. Insurers can make more money by insuring patients with more health conditions, which leads to higher federal payments. This creates a financial incentive for insurers to exaggerate patient conditions on paper.
As a result of the investigation, UnitedHealth Group’s stock has dropped over 4% since December, representing an unprecedented decline in the company’s $260 billion value. The company has now begun complying with formal criminal and civil requests from the Department of Justice.
Source: https://www.startribune.com/unitedhealth-group-cooperating-with-federal-investigation-of-its-medicare-business/601442302