UNITEDHEALTH UNDER CRIMINAL PROBE FOR POSSIBLE MEDICARE FRAUD – The company’s stock slipped 8% in after-hours trade following the report
The U.S. Department of Justice (DOJ) is reportedly carrying out a criminal investigation into UnitedHealth Group for possible Medicare fraud. The company’s stock slipped 8% in after-hours trade following the report, which follows a series of problems at the insurer.
On Tuesday May 13th, UnitedHealth Group’s CEO, Andrew Witty, stepped down unexpectedly, and the company simultaneously suspended its 2025 financial forecast due to rising medical costs. The announcement sent shares plunging nearly 18% to a four-year low.
While the exact nature of the criminal allegations is unclear, according to people familiar with the matter, the probe by the healthcare-fraud unit of the DOJ’s criminal division has been active since at least last summer.
In February,a civil fraud investigation was launched into UnitedHealth’s Medicare practices. The company had then said that it was unaware of any new probe.
In the same month, U.S. Senator Chuck Grassley launched an inquiry into UnitedHealth’s Medicare billing practices, requesting detailed records of their compliance program and other related documents.
The new investigation follows a broader scrutiny into the Medicare Advantage program.
