UnitedHealth Group, America's largest insurer, is facing yet another crisis. The company's stock price (NYSE: UNH) plummeted in early trading this morning after a new report alleged that the private insurance provider is facing a probe from the U.S. Department of Justice (DOJ) over its Medicare billing practices, a claim UnitedHealth Group denies.
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Stephanie Link, Hightower Advisors, joins 'Closing Bell' to discuss the DOJ probe into UnitedHealth and its impact on the stock.
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The probe is analyzing the company's practice of frequently logging diagnoses that trigger larger payments to its Medicare Advantage plans, according to a report.
UnitedHealth shares sank after the Wall Street Journal reported that the insurer's Medicare billing protocols are under investigation by the U.S. Department of Justice.
Federal government examining whether insurance giant is illegally raising Medicare program users' monthly payments
We see a bifurcated pre-market on the major indexes this morning. The Nasdaq is looking positive, +100 points at this hour, or +0.46%, while the S&P 500 is +0.08% and the small-cap Russell 2000 +0.66%.
UnitedHealth Group Inc (NYSE:UNH, ETR:UNH) shares slumped following reports that the US Department of Justice has initiated a civil fraud investigation into the company's Medicare billing practices. Per a Wall Street Journal (WSJ) report citing sources with knowledge of the matter, the probe is focused on how the company documents diagnoses that can lead to increased payments for its Medicare Advantage plans, particularly within physician groups owned by UnitedHealth.