Breaking: UnitedHealth Faces Criminal Investigation for Alleged Medicare Fraud – What It Means for You

The U.S. Department of Justice (DOJ) is investigating UnitedHealth Group for possible Medicare fraud. This news caused the company’s stock to drop by 8% after hours, adding to its recent troubles.

UnitedHealth’s CEO, Andrew Witty, resigned unexpectedly, and the company suspended its 2025 financial forecast, citing rising medical costs. As a result, shares fell nearly 18% to a four-year low.

Details about the criminal allegations are still unclear. Reports suggest the DOJ’s healthcare-fraud unit has been looking into UnitedHealth since last summer. Earlier this year, a separate civil investigation into the company’s Medicare practices began, but UnitedHealth claimed it wasn’t aware of any new issues.

Additionally, U.S. Senator Chuck Grassley has initiated an inquiry into UnitedHealth’s Medicare billing practices, asking for records that detail their compliance efforts.

UnitedHealth responded to the latest news, calling the reporting “irresponsible” and defending the integrity of its Medicare Advantage program. They haven’t received any official notifications from the DOJ regarding the investigation.

This investigation comes amid broader scrutiny of Medicare Advantage programs. The DOJ recently filed a lawsuit against major health insurers, alleging they paid kickbacks to brokers to attract patients to their plans. Nearly half of the 65 million Americans on Medicare are part of these private Medicare Advantage plans.

Recent statistics show that while standard Medicare is government-managed, private insurers receive a set fee for each patient, which increases if patients have multiple health issues. This system has raised concerns about potential abuse, drawing even more attention to the practices of major health insurers like UnitedHealth.

The conversation around Medicare Advantage is growing on social media, with users expressing both support and skepticism about private insurers’ role in healthcare. As this investigation unfolds, it highlights the ongoing challenges and scrutiny facing healthcare companies in the U.S. For more in-depth insights, you can visit Bloomberg for the latest updates.

Source link

Health care industry,UnitedHealth Group Inc,business news