UnitedHealth Group plunged late on a report that it faces a criminal probe for Medicare fraud, the latest setback for the Dow Jones giant.
The Justice Department has been investigating UnitedHealth since last summer for possible Medicare fraud, the Wall Street Journal reported, citing sources. The health insurance giant faces several other probes.
The specific criminal allegations are unclear, but likely focus on Medicare Advantage billing practices. UnitedHealth has faced claims that questionable Medicare Advantage claims cost taxpayers billions of dollars.
UnitedHealth stock fell 6% in extended trade to the lowest levels since late 2020. The news helped pressure Dow Jones futures.
On Tuesday, UNH stock crashed 17.8% after UnitedHealth warned on medical costs for the second time in a month and said CEO Andrew Witty was stepping down for personal reasons.
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