UnitedHealth Group Alleged Fraud

UnitedHealth Group is under investigation by the U.S. Department of Justice for alleged criminal healthcare fraud. The federal probe is focusing largely on UHG’s business practices surrounding Medicare Advantage, although the nature of the allegations remains unclear.

Shares in the company tumbled 16% when the probe was revealed, hitting a five-year low on Thursday. While details of the probe remain limited, the news has heightened investor concerns. Shares in the UnitedHealth Group tumbled after it was reported that the largest health insurer in the US is under investigation over possible criminal fraud.

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 its executive Brian Thompson was targeted and killed outside a New York City hotel. 

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.