(Reuters) -The US Department of Justice has started an investigation into Medicare invoicing practices of UnitedHealth in recent months, the Wall Street Journal reported on Friday, with reference to people who are familiar with the issue.
Shares of the company fell almost 10% on the market. Shares from other health insurers also fell for the bell.
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The new investigation into civilian fraud investigates the practices of UnitedHealth for registering diagnoses that cause additional payments to its Medicare Advantage plans, including physician groups that the insurance giant owned, the report added.
Doj and UnitedHealth did not immediately respond to Reuters requests for comments.
Medicare Advantage plans are offered by private insurers who receive a fixed rate by the US government to manage health care for the elderly who are looking for extra benefits that are not treated in regular Medicare coverage. The Doj has a long -term lawsuit pending UnitedHealth compared to Medicare Advantage.
The Department had also charged UnitedHealth’s $ 3.3 billion takeover from Amedisys Inc, stating that the deal would reduce competition in the home health services market.
UnitedHealth runs the largest health insurer in the country, Unitedhealthcare, as well as pharmacy advantage manager Optum and medical practices.
The company and his colleagues, who offer the government supported medicine and medicaid insurance plans for people with a low income, have seen an increase in medical costs in the past quarters.
The company also encountered other challenges last year, including a cyber attack on the Change Care of the Technical Division and a return on the refusal of insurance claims after the murder of the CEO of UnitedHealthcare, Brian Thompson.
(Reporting by Sriparna Roy in Bengali; adaptation by Shailesh Kuber)
