Introduction to UnitedHealth Investigation
The Unitedhealth Group’s shares slipped back on Thursday after the health giant declared that it was under an investigation by the Ministry of Justice. The company stated that they comply with both criminal and civil inquiries from federal investigators, and they were working with them.
Company Statement
"(Unitedhealth) has a long time about responsible behavior and effective compliance," said the company in a submission of securities and stock exchange commissions. At the beginning of this year, the Wall Street Journal said that federal officials had initiated an investigation of civil fraud in which the company diagnosed that lead to additional payments for the Medicare advantage or MA plans.
Medicare Advantage Plans
These are privately conducted versions of the government’s Medicare reporting program mainly for people aged 65 and over. The company’s United Healthcare business covers more than 8 million people as the largest provider of Medicare Advantage plans in the country. The business has been under pressure in the last quarters due to increasing care consumption and installments.
Investigation Details
The Unitedhealth Group Inc. said in February that the beginning of a new activity, as the paper reported, was not known. The company announced on Thursday that it turned to the Ministry of Justice "After checking media reports on investigations on certain aspects of participating the company in the Medicare program". Unitedhealth runs one of the largest companies for health insurance and pharmacy services in the country.
Company Performance
It also operates a growing optum business that offers nursing and technology support. Corporate shares have replaced the value since December, when the CEO of Unitedhealthcare was fatally shot in Midtown Manhattan on the way to the company’s annual investor meeting.
Share Price
The share price decreased by 1.7% or $4.97 to $287.54 on Thursday morning.
