UnitedHealth that faces the Doj's investigation into Medicare's billing


Unitedhealth Group Revealed on Thursday facing investigations from the Department of Justice on its Medicare billing practices, which adds to a series of setbacks for a company that owns the largest and powerful private insurer in the country.

In a presentation of securities, the company said that it has begun to comply with the formal requests and formal civilians of the Department of Justice, and that it communicated with the department after reports of the probes arose. UnitedHealth also said that he has launched a review of third parties of its commercial and metric policies.

The company told CNBC that it hopes to complete that review towards the end of the third quarter.

In the presentation, UnitedHealth said that “he has full confidence in his practices and undertakes to work cooperatively with the department throughout this process.”

The actions of UnitedHealth Group fell around 2% on Thursday. It is likely that company executives in front of questions about the investigation during their gain call from the second quarter on July 29.

Jared Holz, Mizuho values medical care strategist, told customers in an email on Thursday that the announcement “is not shocking”, but said the company previously denied the Doj research claims. He said that UnitedHealth's decision to admit probes and cooperate with the department “everything sounds logical as it advances with a new CEO.”

The company announced the abrupt departure of former CEO Andrew Witty in May.

The announcement of UnitedHealth on Thursday occurs after the Wall Street Journal reported in May that the Department of Justice is carrying out a criminal investigation into the giant of health on the possible Medicare fraud. In response at that time, the company said it is “because of the integrity of our Medicare Advantage program.”

In July, the Journal also reported that the Department of Justice interviewed several doctors about the practices of UnitedHealth and if they felt pressured to present claims for certain conditions that reinforced the payments of the Medicare Advantage program to the company.

That marked the second time this year when Medicare Advantage's business of the insurer has been the subject of federal scrutiny. The magazine also reported in February that the Department of Justice is carrying out a civil investigation into whether the company inflated diagnoses to trigger additional payments to its Medicare advantage plans.

But on Thursday, UnitedHealth said that the independent audits of the Centers for Medicare and Medicaid services “confirm” that the company's practices are “among the most precise of the industry.”

More CNBC health coverage

UnitedHealth also pointed out a special mastery recommendation in March in favor of the company in a legal battle of years with the Department of Justice that began with a complainant who claimed that the company illegally retained at least $ 2 billion through the Medicare Advantage program. The special teacher assigned to the case by a judge said that the Department of Justice lacked evidence.

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 update in the investigation occurs after a tumultuous last year for UnitedHealthcare. Actions of the Matrix Company of UnitedHealthcare, Unitedhealth GroupThey have decreased more than 42% during the year after suspending their prognosis of 2025 amid the medical costs, announced Witty's surprise exit and dealt with the probes reported in his Medicare Advantage business.

The company's 2024 was not easier, marked by a historic cyber attack and the torrent of public decline after the murder of the United CEO of United, Brian Thompson.

– Bertha Coombs of CNBC contributed to this report.

Do not miss these ideas of CNBC Pro

scroll to top