UnitedHealth Under Federal Investigation Over Medicare Advantage Practices

UnitedHealth Group confirmed Thursday that it is under investigation by the U.S. Department of Justice for its Medicare Advantage program. The nation’s largest health insurer stated it is complying with both criminal and civil inquiries and has “full confidence in its practices.”

The probe reportedly centers around potential fraud in the way UnitedHealth manages its Medicare Advantage plans, which serve millions of seniors through government contracts. The Wall Street Journal previously reported in May that the company was being investigated for possibly inflating patient diagnoses to increase payments.

In response, UnitedHealth said it has launched third-party reviews into several aspects of its operations, including the coding used to assess patient health, its managed care practices, and its pharmacy operations.

This latest development comes amid a string of crises for the company. In December, Brian Thompson, CEO of UnitedHealth’s insurance unit, was shot and killed in New York City, fueling online outrage over the insurer’s denial practices. The turmoil continued when CEO Andrew Witty stepped down in May, just as the company suspended its financial outlook due to higher-than-expected costs in Medicare Advantage.

Stephen Hemsley, UnitedHealth’s former longtime CEO, has since returned to lead the company. UnitedHealth’s stock has dropped more than 50% in the past year, losing over $277 billion in value.

Credit: CNN Newsource
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