UnitedHealth Group is currently cooperating with federal criminal and civil investigations into its Medicare business. The company disclosed its involvement in these investigations in a Securities and Exchange Commission filing, stating it has a history of responsible conduct and effective compliance.
Earlier reports indicated that a civil fraud investigation by federal officials was examining the company’s practices regarding diagnoses that lead to additional payments for its Medicare Advantage plans, primarily serving individuals aged 65 and older. The investigations reportedly focus on billing practices and the company’s use of healthcare professionals to gather diagnoses that may influence payment structures.
Despite these challenges, UnitedHealth expressed confidence in its practices and commitment to working with the Department of Justice throughout the investigation process. The company is the largest provider of Medicare Advantage plans, covering over 8 million individuals. However, it has faced pressure from increased healthcare utilization and recent rate cuts.
UnitedHealth Group’s revenue surpassed $400 billion last year, placing it third on the Fortune 500 list. Nevertheless, its stock has seen a significant decline since reaching an all-time high of over $630 last fall. The stock price was reported at $281.78, reflecting a 55% drop since November.
The company is scheduled to report its second-quarter financial results next Tuesday.
