UnitedHealth Shares Drop 12% Amid DOJ Medicare Investigation

UnitedHealth Group's shares plummeted by 12% following the announcement of a civil fraud investigation by the U.S. Department of Justice into its Medicare billing practices, particularly concerning potential overbilling linked to patient diagnoses. The investigation raises concerns about whether the company manipulated diagnosis codes to secure higher payments from Medicare Advantage, which has prompted broader scrutiny of billing practices across the healthcare industry. Analysts are cautious about the implications for UnitedHealth and its peers, as the probe could lead to significant changes in billing practices if irregularities are found. The fallout from the announcement was felt across the market, with other insurers like Humana and CVS Health also experiencing stock declines. This situation underscores the need for compliance and transparency in healthcare as the government continues to examine costs in the Medicare Advantage program. The investigation follows an extensive report by the Wall Street Journal, which highlighted questionable practices among large insurance firms regarding Medicare billing.