Shares of UnitedHealth Group (NYSE:UNH) dropped 4% Thursday morning after the company disclosed it is being investigated by the U.S. Department of Justice over certain elements of its Medicare program participation.
In a recent SEC filing, UnitedHealth revealed that it has started responding to formal criminal and civil inquiries from the DOJ. The healthcare giant said it proactively contacted authorities after reviewing media coverage about probes into specific aspects of its Medicare involvement.
UnitedHealth highlighted its “long record of responsible conduct and effective compliance” in the filing, adding that independent audits by the Centers for Medicare & Medicaid Services (CMS) verify the company’s procedures “are among the most accurate in the industry.” The filing also cited a Special Master appointed by the court who, after a decade-long civil lawsuit, found “no evidence to support claims of wrongdoing.”
To further address any potential issues, UnitedHealth has launched a program for third-party evaluations of its policies, procedures, and processes concerning risk assessment coding, managed care, and pharmacy services.
The company reiterated its commitment to upholding business integrity and “serving as reliable stewards of American tax dollars,” while cooperating fully with the DOJ throughout the investigation.
UnitedHealth is among the largest healthcare firms in the U.S., offering health insurance and managing its healthcare services division, Optum.
UnitedHealth Group stock price
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