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UnitedHealth Group introduced Thursday that it’s beneath an investigation by the Division of Justice over the insurance coverage firm’s Medicare billing practices.
UnitedHealth says it proactively reached out to the DOJ following a February report from the Wall Road Journal that first indicated the DOJ was launching a probe. The corporate says it’s absolutely complying with the investigation.
“The Firm has full confidence in its practices and is dedicated to working cooperatively with the Division all through this course of,” UnitedHealth wrote in a submitting with the Securities and Trade Fee (SEC).
“The Firm has a protracted file of accountable conduct and efficient compliance. Unbiased CMS audits affirm that the Firm’s practices are among the many most correct within the business,” the submitting continued.
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The UnitedHealth firm brand is displayed on a smartphone display. The corporate is reportedly the topic of a Justice Division investigation. (Piotr Swat/SOPA Photographs/LightRocket through / Getty Photographs)
UnitedHealth’s inventory slid 15% within the fallout of the Journal’s preliminary report on the prison probe in February.
The brand new probe solely added to the well being insurer’s checklist of issues, together with a number of authorities inquiries, a sudden change in high management and a pulled outlook within the face of hovering medical prices.
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The management swap entails CEO Andrew Witty’s abrupt departure and the withdrawal of its 2025 forecast, which triggered an 18% drop in shares to a four-year low in early Might.
Andrew Witty, CEO of UnitedHealth Group, arrives for a Senate Finance Committee listening to in Washington, D.C., on Might 1, 2024. (Al Drago/Bloomberg through / Getty Photographs)
In February, the WSJ revealed a civil fraud investigation into UnitedHealth’s Medicare practices, whereas Sen. Chuck Grassley, R-Iowa, launched an inquiry into the corporate’s billing strategies, demanding detailed compliance information.
For many years, the corporate has flourished by leveraging its dominance in insurance coverage and progress within the Medicare market, the U.S. authorities program that covers medical prices for the aged.
Sen. Chuck Grassley launched a probe into UnitedHealth’s billing practices earlier this 12 months. (Anna Moneymaker / Getty Photographs)
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UnitedHealth will not be alone in taking hearth, nevertheless, because the medical insurance business as a complete has come beneath authorities scrutiny after a Might lawsuit accused three main U.S. insurers of paying kickbacks to brokers to steer sufferers into their plans.
Reuters contributed to this report