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Shares of UnitedHe alth Group dove greater than 18% on Thursday complying with a record that the Department of Justice is performing a criminal examination right into the health-care titan over feasible Medicare fraudulence.
The DOJ is concentrating on the firm’s Medicare Advantage company techniques, yet the specific nature of the possible criminal claims is uncertain, The Wall Street Journal reported late Wednesday, pointing out individuals acquainted with the issue.
In a declaration, UnitedHe alth Group stated the Justice Department has actually not informed it concerning the reported probe and called the paper’s coverage “deeply irresponsible.”
The firm additionally stated “we stand by the integrity of our Medicare Advantage program.”
It notes the 2nd time this year that the insurance provider’s Medicare Advantage company has actually come under government examination. The Journal reported in February that the DOJ is performing a civil examination right into whether the firm pumped up medical diagnoses to set off added settlements to its Medicare Advantage strategies.
The reported examination additionally adheres to the shock departure of UnitedHe alth Group CHIEF EXECUTIVE OFFICER Andrew Witty, that will certainly be changed by the firm’s previous long time president,Stephen Hemsley
Shares of UnitedHe alth Group are down about 49% this year complying with a string of obstacles for the firm.
UnitedHe alth Group has actually shed over $300 billion of its $600 billion market cap in simply one month, Jared Holz, Mizuho health-care equity planner, stated in an e-mailThursday He stated there is some danger that the firm will certainly be eliminated from the Dow Jones Industrial Average “at some point unless there is greater evidence of greater consistency.”
UnitedHe alth Group additionally had a troubled 2024, facing a historical cyberattack, higher-than-expected clinical prices and the gush of public blowback after the murder of UnitedHe althcare’s chief executive officer Brian Thompson.
