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UnitedHealth Group Reportedly Under Investigation For Possible Medicare Fraud
By: bitcoin ethereum news|2025/05/15 09:15:05
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Topline UnitedHealth Group is being investigated for possible Medicare fraud, according to The Wall Street Journal, sending shares of the healthcare company sliding in after-hours trading just one day after its CEO, Andrew Witty, announced he was stepping down from his position. UnitedHealthcare is owned by UnitedHealth Group. (Photo by PATRICK T. FALLON/AFP via Getty Images) Key Facts The Justice Department’s healthcare-fraud unit is leading the probe, the Journal reported. UnitedHealth Group’s stock tanked around 7% following the Journal’s report, bringing shares to their lowest point in almost five years. The specifics of the criminal allegations against UnitedHealth Group are unclear, according to the Journal, which cited unnamed people familiar with the matter who noted the probe is focusing on UnitedHealth Group’s Medicare Advantage business practices. UnitedHealth Group and the Justice Department did not immediately respond to Forbes’ requests for comment. Get Forbes Breaking News Text Alerts : We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here . How Has Unitedhealth Group’s Stock Performed This Year? Poorly. Shares are down 39% on the year to $308 after tanking in April and falling again Wednesday. The April slump came after the company cut its profit outlook and fell short of Wall Street expectations with its first quarter earnings. Key Background In addition to financial struggles partially fueled by increasing medical costs, UnitedHealth Group has been hindered by the departure of Witty, who abruptly stepped down for “personal reasons” Tuesday. He was replaced by former CEO Stephen Hemsley. The company is also being investigated for possible antitrust violations, the Journal reported. UnitedHealth Group’s subsidiary, UnitedHealthcare, was thrust into the public spotlight in December after CEO Brian Thompson was killed in a high-profile Manhattan shooting. Luigi Mangione, the suspected shooter, has pleaded not guilty to state and federal charges that include murder, stalking and terrorism. Further Reading UnitedHealth Group Is Under Criminal Investigation for Possible Medicare Fraud (WSJ) Luigi Mangione Federally Indicted After Bondi Says Prosecutors Will Seek Death Penalty (Forbes) Source: https://www.forbes.com/sites/antoniopequenoiv/2025/05/14/unitedhealth-group-under-justice-department-investigation-over-potential-medicare-fraud-report-says/
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