UnitedHealth Group Faces DOJ Investigation, Stocks Fall
UnitedHealth Group (UNH) experienced a significant decline in stock value on Friday due to reports of a Department of Justice (DOJ) investigation into its Medicare Advantage insurance business. The investigation stems from allegations that UnitedHealth records diagnoses to increase payments from the Centers for Medicare and Medicaid Services (CMS).
In response to the reports, UnitedHealth released a statement denying any wrongdoing and stating that the company "consistently performs at the industry's highest levels" in government reviews. However, the investigation represents the sixth time this year that UNH has seen a decline in stock value.
The investigation adds to a series of challenges faced by UnitedHealth in recent months. Earlier this week, the company offered buyouts to employees and considered layoffs in its health insurance division. Additionally, the DOJ has scrutinized the company's potential breakup, and the Federal Trade Commission (FTC) may block its latest acquisition.
These challenges have contributed to a decline in UnitedHealth's market cap, which currently stands at $460 billion. The company's growth prospects have shifted from its previous status as a potential trillion-dollar healthcare giant.