DOJ Launches Civil Fraud Investigation into UnitedHealth's Medicare Billing Practices

The U.S. Justice Department has initiated a civil fraud investigation into UnitedHealth Group's Medicare billing practices, focusing on how the company records diagnoses that lead to increased payments for its Medicare Advantage plans. This inquiry follows reports suggesting UnitedHealth received billions in federal payments based on questionable diagnoses, including some that were irrelevant or undocumented. Shares of UnitedHealth fell nearly 10% in premarket trading as the investigation adds to existing scrutiny, including an antitrust probe and a pending lawsuit to block its acquisition of Amedisys. Additionally, a prior analysis indicated that UnitedHealth-employed doctors significantly inflated the number of lucrative diagnoses for patients, raising concerns about the accuracy of their billing practices. The company has defended its methods, claiming they lead to better patient care and more accurate diagnoses. Meanwhile, the investigation continues in the context of rising medical costs and ongoing challenges faced by the healthcare giant.