UnitedHealth Faces Federal Investigations Over Medicare Advantage Billing Practices

UnitedHealth Group, the largest provider of Medicare Advantage plans covering over 8 million people, is cooperating with federal criminal and civil investigations related to its Medicare business. The investigations, initiated by the Department of Justice, focus on the company's billing and diagnosis recording practices that influence payment rates for Medicare Advantage plans.

These probes were publicly reported earlier in the year by The Wall Street Journal, highlighting concerns over how the company utilizes doctors and nurses to secure diagnoses that could increase government reimbursements. UnitedHealth has stated its commitment to compliance and confidence in its operational practices while cooperating fully with federal authorities.

The Medicare Advantage segment has faced recent financial pressures due to increased healthcare utilization and rate reductions, impacting UnitedHealth's financial outlook and stock performance. The company has experienced significant operational challenges, including a revised fiscal forecast and leadership changes, contributing to a substantial decline in its stock price from its peak. UnitedHealth is preparing to release its second-quarter financial results, which will provide further insights into its current business conditions and outlook.