Shares of UnitedHealth Group slipped Thursday after the health-care big mentioned it was beneath a Division of Justice investigation.
The corporate mentioned it has began complying with each prison and civil requests from federal investigators and it was cooperating with them.
“(UnitedHealth) has a long record of responsible conduct and effective compliance,” the corporate mentioned in a Securities and Alternate Fee submitting.
Earlier this yr, The Wall Road Journal mentioned federal officers had launched a civil fraud investigation into how the corporate data diagnoses that result in further funds for its Medicare Benefit, or MA, plans. These are privately run variations of the federal government’s Medicare protection program largely for folks ages 65 and over.
The corporate’s UnitedHealthcare enterprise covers greater than 8 million folks because the nation’s largest supplier of Medicare Benefit plans. The enterprise has been beneath stress in latest quarters on account of rising care use and charge cuts.
The Journal mentioned in February, citing nameless sources, that the probe centered on billing practices in latest months.
The paper then mentioned earlier this month {that a} federal prison well being care-fraud unit was investigating how the corporate used docs and nurses to assemble diagnoses that bolster funds.
UnitedHealth Group mentioned that it reached out to the Justice Division “after reviewing media reports about investigations into certain aspects of the company’s participation in the Medicare program.”
UnitedHealth runs one of many nation’s largest medical health insurance and pharmacy advantages administration companies. It additionally operates a rising Optum enterprise that gives care and know-how assist.
UnitedHealth raked in additional than $400 billion in income final yr because the third-largest firm within the Fortune 500. Final yr, its share worth topped $630 to achieve a brand new all-time excessive.
However firm shares have largely shed worth since December, when UnitedHealthcare CEO Brian Thompson was fatally shot in midtown Manhattan on his option to the corporate’s annual investor assembly. A 26-year-old suspect, Luigi Mangione, has been charged in reference to the taking pictures.
In April, shares plunged after the corporate minimize its forecast on account of a spike in well being care use. A month later, former CEO Andrew Witty resigned and the corporate withdrew its forecast.
The inventory worth slipped one other 2%, or $5.12, to $287.39 Thursday morning. That represents a 54% drop from its all-time excessive.
UnitedHealth will report its second-quarter outcomes subsequent Tuesday.
