UnitedHealth under investigation for possible Medicare fraud, per WSJ report
UnitedHealth shares were tumbling in early trading again this morning after The Wall Street Journal reported late on Wednesday that the US Department of Justice is investigating the healthcare giant for possible Medicare fraud.
UnitedHealth responded in a statement that it had not been notified about the reported investigation by the Justice Department and stood by “the integrity of our Medicare Advantage program.”
The DOJ is focusing on the company’s Medicare Advantage business practices, and have been probing into the case since at least last summer, according to people familiar with the matter cited by the WSJ.
The report comes the same week that CEO Andrew Witty abruptly stepped down from the top job, with the company simultaneously suspending its earnings guidance, sending shares down 18% on Tuesday. The case is the latest of many federal inquiries into UnitedHealth, including a civil investigation of the company’s Medicare billing practices and an antitrust case over its acquisition of home health operator Amedisys.
The DOJ is focusing on the company’s Medicare Advantage business practices, and have been probing into the case since at least last summer, according to people familiar with the matter cited by the WSJ.
The report comes the same week that CEO Andrew Witty abruptly stepped down from the top job, with the company simultaneously suspending its earnings guidance, sending shares down 18% on Tuesday. The case is the latest of many federal inquiries into UnitedHealth, including a civil investigation of the company’s Medicare billing practices and an antitrust case over its acquisition of home health operator Amedisys.
