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Actions of Unitedhealth Group More than 13% was immersed on Thursday after a report that the Department of Justice is carrying out a criminal investigation into the giant of health on the possible Medicare fraud.
The Department of Justice is focusing on the Company's Medicare Advantage commercial practices, but the exact nature of possible criminal accusations is not clear, the Wall Street Journal reported Wednesday night, citing people familiar with the matter.
In a statement, United Group said the Department of Justice has not notified him about the reported investigation and described the reports of the newspaper “deeply irresponsible.”
The company also said: “We support the integrity of our Medicare Advantage program.”
It marks the second time this year that the Medicare Advantage business of the insurer has been under federal scrutiny. The Journal reported in February that the Department of Justice is carrying out a civil investigation If the company inflated diagnoses to trigger additional payments to its Medicare advantage plans.
The Medicare and Retirement segment of UnitedHealthcare, which includes the Medicare Advantage business, is the largest revenue promoter of UnitedHealth Group, raising $ 139 billion in sales last year.
The reported investigation also follows the surprise departure of the CEO of United Group Andrew Witty, who will be replaced by the former executive director of the company, Stephen Hemsley.
The actions of UnitedHealth Group have fallen approximately 49% this year after a series of setbacks for the company.
UnitedHealth Group has lost more than $ 300 billion of its market capitalization of $ 600 billion in just one month, said Jared Holz, Mizuho medical care strategist, in an email on Thursday. He said there is a risk that the company will be eliminated from the Dow Jones industrial average “at some point unless there is greater evidence of greater consistency.”
UnitedHealth Group also had a tumultuous 2024, dealing with a historical cybernetic attack, higher medical costs than expected and the public setback torrent after the murder of the CEO of Unitedhealthcare, Brian Thompson.
