UnitedHealth Group (UNH) still had a tough day on the trade on Friday.
Reports that the Ministry of Justice (DOJ) is investigating that its Medicare Advantage Insurance activities have sent the share more than 8% lower in early trade.
The investigation into civilian fraud, reported for the first time by the Wall Street Journal, investigates how UnitedHealth registers diagnoses that increase the payments of the Centers for Medicare and Medicaid Services (CMS). CMS pays a fixed amounts for private insurers to offer alternative medicine coverage.
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In a statement on Friday, United Health mentioned the report wrong information.
“The Wall Street Journal remains wrong information about the Medicare Advantage (MA) program. The government regularly assesses all MA plans to guarantee compliance and we consistently perform at the highest levels of the industry on those assessments, “said the statement.
United Health added that the company was not aware of any new activity by the Doj.
Friday’s news marks the sixth time this year that the share has been traded and the second time this week. Earlier this week, the company reportedly offered buyouts to employees of its health insurance activities, UnitedHealthcare, and considered it dismissed if it did not reach the target for buyouts.
That is just the last headwind that the company has fought in the last 12 months. Last year UnitedHealth was the target of a widespread cyber security attack that influenced more than 190 million – a number that the company only revealed at the start of this year.
The DOJ has also examined the company on a potential disintegration and the Federal Trade Commission (FTC) could block its latest acquisition.
Moreover, the company suffered a tragedy in December, with the shooting and death of his top insurance, Brian Thompson. The attack sent shock waves through the industry in the midst of a public recoil.
The market capitalization of $ 460 billion from the company has decreased in the midst of all this pressure, which marks a considerable shift in his growth views of previous years, when it was a favorite to become the first Biljoen Dollar Healthcare Company.
Anjalee Kachmli Is the senior health reporter at Yahoo Finance, who covers all things pharmaceutical, insurance, care services, digital health, PPE and health policy and politics. That of course includes GLP-1S. Follow Anjalee on social media platforms X, LinkedIn and Bluesky @Anjkhem.
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