The U.S. Department of Justice is reportedly under investigation into Medicare fraud.
The Justice Department has investigated the company in civil litigation.
The news comes a few days after the company's CEO suddenly left.
10 Better Stocks from UnitedHealth Group›
Shares UnitedHealth Group (NYSE:UNH) Falling down Thursday. The company's stock fell 15% as of 11:33 a.m. ET, but lost 19.2% earlier in the day. The collapse is with S&P 500 Obtained 0.1%, Nasdaq Composite Materials 0.4%.
The troubled health insurance giant faces a report from the Department of Justice (DOJ) on possible Medicare fraud investigations.
Wall Street Journal Later Wednesday, the Department of Justice’s health care fraud department is conducting a criminal investigation into companies’ health insurance fraud. According to the report, the investigation has been ongoing since at least last summer.
UnitedHealth obviously didn't realize the investigation had begun, but after the news broke, it insisted that it "depending on the integrity of the (ITS) Medicare Advantage program."
The U.S. Department of Justice has investigated United Health in a civil fraud case surrounding its Medicare billing practice. Another inquiry’s revelation comes days after its CEO Andrew Witty suddenly left the company for “personal reasons.”
The company also faces growing health costs, which puts pressure on its profit margins and is forced to cut full-year guidance in its last quarter earnings report.
All of this gives investors confidence in the healthcare giant, whose stock plummeted 50% in just 23 trading days, marking the worst decline for the S&P 100 company, as Netflix According to Dow Jones market data, it fell 54% in May 2022.
Currently, UnitedHealth is facing too many problems, and the seemingly stable investment is far from this. I will stay away from United Health stocks.
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