UnitedHealth says it’s under federal investigation for civil fraud

UnitedHealth Group, a major player in the healthcare industry, is currently under investigation by the Department of Justice. This news has caused a slight dip in the company’s stock prices. UnitedHealth Group has stated that it is fully cooperating with federal investigators and has begun complying with both criminal and civil requests.

The company has emphasized its commitment to responsible conduct and effective compliance in a recent Securities and Exchange Commission filing. This investigation stems from allegations of civil fraud related to how the company records diagnoses that result in additional payments for its Medicare Advantage plans. These plans are privately administered versions of the government’s Medicare program, primarily catering to individuals aged 65 and above.

UnitedHealthcare, a subsidiary of UnitedHealth Group, is the largest provider of Medicare Advantage plans in the nation, covering over 8 million individuals. The business has faced challenges in recent quarters due to increased healthcare utilization and cuts in reimbursement rates.

In response to reports of investigations, UnitedHealth Group reached out to the Justice Department to address any concerns. The company has a diverse portfolio that includes health insurance, pharmacy benefits management, and the rapidly expanding Optum business, which offers healthcare services and technology solutions.

The company’s shares have experienced fluctuations since the tragic incident involving UnitedHealthcare CEO Brian Thompson, who was fatally shot in Manhattan last December. Despite these challenges, UnitedHealth Group remains a key player in the healthcare industry.

As of Thursday morning, the company’s stock price had decreased by 1.7%, falling to $287.54. This ongoing investigation highlights the importance of compliance and transparency in the healthcare sector.

For more updates and news, stay tuned to CBS News.