UnitedHealth Group Faces DOJ Inquiry, Share Decline
UnitedHealth Group's shares dropped nearly 6% after reports of a DOJ investigation into potential Medicare fraud. The health insurer is already facing multiple challenges, including federal probes and leadership changes. The company's integrity of Medicare Advantage is questioned amidst soaring medical costs and cyber attacks.
Shares of UnitedHealth Group declined by nearly 6% in premarket trading as news of an investigation by the U.S. Department of Justice into potential Medicare fraud surfaced. The Wall Street Journal reported the investigation, which compounds the health insurer's existing challenges.
The company stands amidst governmental inquiries, leadership upheavals, and a withdrawal of its financial outlook due to escalating medical costs, as it battles relentless turbulence. Commenting on the situation, Susannah Streeter, head of money and markets at Hargreaves Lansdown, described UnitedHealth as embroiled in a seemingly unending crisis.
Although UnitedHealth stated it hadn't received any notification from the DOJ regarding the purported probe, it affirmed the integrity of its Medicare Advantage program. The news of the investigation sent the company's stock down 18% to a four-year low, with market capitalization poised to halve from $530 billion if premarket losses persist.
(With inputs from agencies.)
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