DOJ launches the UnitedHealth Billing Probe, reported WSJ. Insurance companies say it doesn’t notice
By Sriparna Roy and Amina Niasse
(Reuters) – The U.S. Department of Justice is investigating United Health’s Medicare claims practices, the Wall Street Journal reported Friday, but health insurance companies said they are unaware of new ongoing investigations.
UnitedHealth Group shares fell 7.3%, while the broader Dow Jones Industrial Average weight fell by more than 1%. Shares in rival insurance companies were caught up in a sale, with Humana down 5.5% and CVS health down 2.3%.
Private fraud investigations launched in recent months are considering the company’s practices to record diagnosis that will cause additional payments to Medicare Advantage plans, and the journal said: People familiar with the issue It was reported that it was cited.
The newspaper has run a series of stories over the past few months, detailing how UnitedHealth is using Medicare claims rules to benefit and benefit.
UnitedHealth said the report contains misinformation about the Medicare Advantage Plan without providing details.
“The government regularly reviews all MA plans to ensure compliance and performs consistently at the highest level in the industry with these reviews,” UnitedHealth said in a statement.
The Department of Justice declined to comment.
Almost half of the 65 million people eligible for Medicare, a US program for those over 65 years old or disabled, are enrolled in the Medicare Advantage Plan, run by private insurance companies. Insurance companies are paid a set rate for each patient, but they can pay more for patients with multiple health conditions.
Standard Medicare coverage is governed by the government.
“Investors sell because they produce unknowns that are difficult to quantify. At this point, they truly know how the research unfolds and what the ultimate impact on UNH’s profitability is. It’s not possible.” Management owns UnitedHealth stock.
United have several businesses, including benefits managers for large pharmacies. The company’s margins are already under pressure from rising healthcare costs in its insurance business.
The reported survey is the latest in a recent series of set folds from UnitedHealth.
The stock is under pressure as the insurance business CEO Brian Thompson was fatally shot in New York on December 4th, and conversations about frustration by navigating the US insurance system caused.
Overreaction?
Only 15% of members of Medicare Advantage’s UnitedHealth insurance business could be overreacting the lawsuit, according to MoinstStar analyst Julie Atterback.