UnitedHealth Group (UNH) Faces Scrutiny Over Medicare Advantage Program
UnitedHealth Group (NYSE: UNH) has encountered another setback in trading, with a significant decline of 8% on Friday. The drop follows reports alleging an investigation by the Department of Justice (DOJ) into the company's Medicare Advantage insurance practices.
According to the Wall Street Journal, the investigation centers around UnitedHealth's coding practices for diagnoses, which may have influenced higher payments from the Centers for Medicare and Medicaid Services (CMS).
In response, UnitedHealth has dismissed the report as "misinformation." The company maintains its compliance with industry standards and has not received notice of any new inquiries from the DOJ.
This latest news adds to a series of challenges faced by UnitedHealth in recent months. The stock has fallen six times this year, including twice this week. Additionally, the company has offered employee buyouts and considered layoffs in its health insurance business, UnitedHealthcare.
In the past year, UnitedHealth was the target of a cyberattack affecting 190 million individuals. The company has also faced potential antitrust scrutiny from the DOJ and a potential acquisition blockage by the Federal Trade Commission.
Amid these pressures, UnitedHealth's market capitalization has declined, casting doubt on its projected trillion-dollar valuation in earlier years.