UnitedHealth Group is being investigated by the Justice Department for possible Medicare Fraud, according to a report.
The healthcare-fraud unit of the Justice Department’s criminal division is overseeing the investigation, which has been ongoing since last summer, sources told The Wall Street Journal.
The nature of the potential criminal allegations was not immediately clear. The sources said the probe was focusing on the company’s Medicare Advantage business practices.
UnitedHealth said in a statement it was not notified about the “supposed criminal investigation reported,” but that the company stood by “the integrity of our Medicare Advantage program.”
UnitedHealth stock fell eight percent in after-hours trade following the report.
The health insurer has endured a tumultuous past few months including UnitedHealth Group’s CEO Andrew Witty unexpectedly resigning due to “personal reasons” on Tuesday
Stephen Hemsley, who led the company for over a decade until 2017, will return as CEO. The announcement, merely the latest setback for the insurer, sent shares plunging nearly 18 percent.
Amid the personnel change, UnitedHealth’s stock has declined by almost 50 percent over the past month, according to the Journal.
The company faced a slew of setbacks last year as well, including a hack of a technology unit that interfered with payments to many U.S. health providers, and the killing of top executive Brian Thompson.
Last week, UnitedHealth noted in a regular filing that it had been “involved or is currently involved in various governmental investigations, audits and reviews,” without providing any additional details about the investigations.
A Justice Department spokesperson declined to comment to the Journal. The Independent has reached out to the Justice Department and UnitedHealth Group for comment.
