UnitedHealth drops after announcement that regulator will increase Medicare Advantage audits
UnitedHealth fell nearly 3% in after-hours trading after the Centers for Medicare & Medicaid Services announced that it intends to audit all eligible Medicare Advantage contracts each year.
UnitedHealth is one of the largest providers of Medicare Advantage, which is government-funded health coverage managed by a private insurer. The Wall Street Journal reported last week that the Department of Justice is probing UnitedHealth on allegations of gaming the system to get bigger payments from the government.
“We are committed to crushing fraud, waste and abuse across all federal healthcare programs,” Mehmet Oz, CMS administrator, said in a statement.
The company’s stock is down more than 40% this year following a string of negative news, including the Journal’s reporting and the stepping down of its CEO.
On Wednesday during the regular session, shares fell more than 5% after The Guardian reported that UnitedHealth offered financial incentives to nursing homes for avoiding transferring patients to the hospital, saving the company money.
“We are committed to crushing fraud, waste and abuse across all federal healthcare programs,” Mehmet Oz, CMS administrator, said in a statement.
The company’s stock is down more than 40% this year following a string of negative news, including the Journal’s reporting and the stepping down of its CEO.
On Wednesday during the regular session, shares fell more than 5% after The Guardian reported that UnitedHealth offered financial incentives to nursing homes for avoiding transferring patients to the hospital, saving the company money.
