Unexplained people with knowledge of the matter cited in the report by the Wall Street Journal: UnitedHealth Group Inc. is under criminal investigation for feasible Medicare scams.
According to the people, The Justice Department has been looking into the company’s Medicare Advantage company since at least the summer of past.
According to the paper, the nature of the possible legal claims against the insurer isn’t known, citing the people. In postmarket trading in New York’s United Health, shares dropped by more than 8 %.
Despite declining to reply to the magazine, a spokeswoman for the , Department of Justice, declined to speak on the matter. UnitedHealth didn’t respond to questions from the WSJ. Additionally, UnitedHealth staff didn’t respond to Bloomberg’s requests for comment on Wednesday right away.
The employer unavoidably replaced its chief executive officer and suspended income guidance, which is a second shock for investors after it cut its quarterly estimates. The decision added even more uncertainty to the company’s plan to concentrate on Medicare, which has seen decline in recent years but continued to grow in revenue.
In addition to those negative effects, UnitedHealth is currently facing growing scrutiny in Washington as antitrust authorities challenge its plan to buy household wellness company Amedisys Inc.
In recent years, carriers ‘ Medicare Advantage techniques have raised concerns. In the plan, caregivers are paid more to take care of sicker people, with rates determined by the examination rules they submit. In order to increase income, whistleblowers and whistleblowers have accused carriers of exaggerating how ill their patients are, and some companies have paid huge sums to resolve disputes.
In a long-running legal Medicare forgery case, UnitedHealth was accused of overcharging the state of more than$ 2 billion. In that case, the company moved one step closer to a possible dismissal in March thanks to a suitable finding.
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