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| UnitedHealth Group shares plunge after report of Medicare fraud inquiry | |
| (32 minutes later) | |
| Justice department investigation into health insurance giant reported as company’s CEO says he will retire | Justice department investigation into health insurance giant reported as company’s CEO says he will retire |
| Shares in the UnitedHealth Group tumbled after it was reported the largest health insurer in the US is under investigation over possible criminal Medicare fraud. | Shares in the UnitedHealth Group tumbled after it was reported the largest health insurer in the US is under investigation over possible criminal Medicare fraud. |
| The US Department of Justice has been investigating the health insurance giant since last summer, the Wall Street Journal reported, citing unnamed people familiar with the matter. | The US Department of Justice has been investigating the health insurance giant since last summer, the Wall Street Journal reported, citing unnamed people familiar with the matter. |
| UnitedHealth’s shares dropped 16.5% during early trading in New York on Thursday, deepening a stark market rout. Its stock value has halved since the turn of the year. | UnitedHealth’s shares dropped 16.5% during early trading in New York on Thursday, deepening a stark market rout. Its stock value has halved since the turn of the year. |
| Earlier this week, the vast healthcare firm announced its CEO, Andrew Witty, was stepping down for personal reasons as it suspended its full-year financial outlook due to higher-than-expected medical costs. | Earlier this week, the vast healthcare firm announced its CEO, Andrew Witty, was stepping down for personal reasons as it suspended its full-year financial outlook due to higher-than-expected medical costs. |
| It has been a punishing period for UnitedHealth, starting in December when executive Brian Thompson was targeted and killed outside a New York City hotel. | It has been a punishing period for UnitedHealth, starting in December when executive Brian Thompson was targeted and killed outside a New York City hotel. |
| While Medicare is a US government-run health insurance program for older and disabled people, Medicare Advantage is a program under which private health insurers contract with the Medicare program to provide health benefits. | While Medicare is a US government-run health insurance program for older and disabled people, Medicare Advantage is a program under which private health insurers contract with the Medicare program to provide health benefits. |
| UnitedHealth said: “We have not been notified by the Department of Justice of the supposed criminal investigation reported, without official attribution, in the Wall Street Journal today.” | UnitedHealth said: “We have not been notified by the Department of Justice of the supposed criminal investigation reported, without official attribution, in the Wall Street Journal today.” |
| “We stand by the integrity of our Medicare Advantage program,” the firm added. | “We stand by the integrity of our Medicare Advantage program,” the firm added. |
| The justice department did not immediately respond to a request for comment. | The justice department did not immediately respond to a request for comment. |
| Earlier this year, the Journal reported that a civil fraud investigation had been launched into UnitedHealth’s Medicare practices, while US senator Chuck Grassley launched an inquiry into the company’s billing methods, demanding detailed compliance records. | Earlier this year, the Journal reported that a civil fraud investigation had been launched into UnitedHealth’s Medicare practices, while US senator Chuck Grassley launched an inquiry into the company’s billing methods, demanding detailed compliance records. |
| For decades, the company has flourished by leveraging its dominance in insurance and growth in the Medicare market, the US government program that covers medical costs for elderly people. | For decades, the company has flourished by leveraging its dominance in insurance and growth in the Medicare market, the US government program that covers medical costs for elderly people. |
| The Associated Press and Reuters contributed reporting | The Associated Press and Reuters contributed reporting |