Insurance giant UnitedHealth Group is facing a criminal investigation by the US Justice Department for possible Medicare fraud, the Wall Street Journal reported Wednesday.
Authorities are probing the firm’s Medicare Advantage program, a scheme where private companies manage the delivery of government health benefits for seniors, the newspaper reported, citing unnamed sources familiar with the matter.
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Protesters with People’s Action target health insurance giant UnitedHealth Group due to exorbitant health insurance costs and insurance claims denials on April 16, 2024 in Eden Prairie, Minnesota. Photo by AFP |
The report is that latest struggle to hit America’s largest health insurer, coming just days after its CEO unexpectedly announced he would be stepping down.
It also follows the high-profile killing last December of Brian Thompson, head of the company’s insurance division, in a case that has brought to the surface deep public frustration with the lucrative US commercial health care system.
UnitedHealth said in a statement it had not been notified by the Justice Department of the supposed investigation and criticized the “deeply irresponsible” article.
The Wall Street Journal previously reported in February that UnitedHealth was under investigation over allegations it directed doctors to make patient diagnoses that would trigger high government payments under Medicare Advantage.
The firm’s shares plunged following the report, after they previously sank 12.3 percent on Tuesday after Andrew Witty announced he was stepping down as CEO for personal reasons. The company also suspended its 2025 outlook, citing higher than expected costs.
