UnitedHealth Group, the nation's largest Medicare Advantage provider, is under federal criminal and civil investigation for potential fraud related to its billing practices and diagnosis coding. The stock price has plummeted.
UnitedHealth Group announced it is cooperating with federal investigations into its Medicare Advantage business. The Department of Justice launched a civil fraud investigation into how the company records diagnoses, potentially leading to inflated payments. A criminal investigation is also underway, focusing on the use of doctors and nurses to gather diagnoses that boost payments. The company, which covers over 8 million Medicare Advantage members, has seen its stock price drop significantly following the news, as well as other recent setbacks including the CEO's death and revised financial forecasts.
