UnitedHealth Group shares fell on Friday after reports that the U.S. Department of Justice has begun an investigation into the Medicare claims practices of the healthcare giant.
The Wall Street Journal said federal officials have launched a civil fraud investigation into how a diagnosis leads to additional payments for Medicare dominance (MA) plans. These are personally implemented versions of the government's Medicare coverage program, primarily for those over the age of 65.
The paper cited an anonymous source and said the study focused on billing practices in recent months.
UnitedHealth said it was unaware of the onset of new activities, as reported by the paper. He criticised the journal's report, saying in a statement posted on its website, “The suggestion that our practices are fraudulent and false.”
The company's UnitedHealthcare business is the country's largest provider of Medicare Advantage Plans, covering over 7.8 million people. Increased use of care and interest rate cuts have led businesses to be under pressure in recent quarters.
The journal's report states that “growing concerns about increased surveillance in insurance companies, particularly MA programs, could put pressure on business practices, revenue and investors' feelings,” according to an analyst at Leerink Partners. Whit Mayo said in his research notes.
Shares in Minnetonka, Minnesota, fell more than 6% on Friday. Stocks of other prominent Medicare Advantage insurance companies like Humana have also fallen with a wider index.
UnitedHealthCare CEO Brian Thompson has been holding a launch in the UnitedHealth Group Inc. since early December. Fatal shot in midtown Manhattan On the way to the company's annual investor meeting. Luigi Mangione, a 26-year-old suspect who led the authorities during the five-day manhunt Appeared in court on Friday This is the first time since his December arrest over the state's murder and horror accusations.
A preliminary trial hearing on Friday was that he appeared at Mangion's first court since he was. Plead not guilty to 11 state chargesincluding first-degree murders that promoted the December terrorist attacks.
The company cut the value by more than $100 in the weeks since Thompson's death, as the shooting caused a pour in complaints about the insurance company.
Posted by the company in January Better profit than expected for the final quarter of 2024However, the increase in medical costs and care use has surprised Wall Street.
