UnitedHealth Group's stock experienced a decline on Thursday following the announcement of a Department of Justice investigation. The healthcare company stated it is cooperating with federal investigators and has begun complying with both criminal and civil requests.
In a filing with the Securities and Exchange Commission, UnitedHealth emphasized its history of responsible conduct and effective compliance. The investigation follows reports earlier this year regarding a civil fraud inquiry into the company's recording of diagnoses, which influence payments for its Medicare Advantage plans.
UnitedHealthcare, a major component of UnitedHealth Group, provides coverage to over eight million individuals and is the largest provider of Medicare Advantage plans in the country. This business has faced challenges in recent quarters due to increased healthcare utilization and rate reductions.
The company stated it contacted the Justice Department after reviewing media reports concerning investigations into its involvement in the Medicare program. UnitedHealth operates significant health insurance and pharmacy benefits management businesses, in addition to its expanding Optum division, which offers care and technology support.
The company's stock price has generally decreased since December, when UnitedHealthcare CEO Brian Thompson was fatally shot. On Thursday morning, the stock price fell by 1.7%, or $4.97, closing at $287.54.
5 Comments
Donatello
The CEO's death prior to the investigation seems to be a factor that has been overlooked.
Raphael
The market is reacting negatively, but let's not panic. The stock will rebound in time.
Michelangelo
healthcare company misdeeds, followed by drop in stock price, followed by promises to improve.
Raphael
This could be a result of over-inflated scrutiny or a small mistake. Let's reserve judgment.
Michelangelo
These investigations are complex. It’s good to let the process play out.