The U.S. Department of Justice is investigating UnitedHealth, the largest health insurer in the country, for allegations of Medicare fraud, the Wall Street Journal (WSJ) reported on the 15th.
WSJ cited a source familiar with the matter that said, “The Department of Justice's criminal division has been conducting an investigation related to UnitedHealth since last summer.”
According to the source, the Department of Justice investigation is focusing on illegal practices routinely conducted by UnitedHealth in its Medicare division.
According to WSJ, the Department of Justice's medical fraud division primarily focuses its investigation on crimes such as rebates that can increase Medicare or Medicaid payments.
Medicare is a public health insurance for individuals aged 65 and older and some individuals with severe disabilities. UnitedHealth holds the largest market share in this field in the U.S.
A spokesperson for UnitedHealth denied to CNBC that they had received notice of the investigation from the Department of Justice.
On the 14th, UnitedHealth announced its earnings report, and simultaneously, Chairman Andrew Witty unexpectedly resigned. The company withdrew its earnings forecast for 2025 due to rising medical costs, and as a result, the stock price dropped by 18% in just one day.
The stock price of this insurer has fallen 47% year-to-date as of the transaction date, effectively halving.
In December last year, UnitedHealth Group's insurance division head, CEO Brian Thompson, was shot and killed by Luigi Manzoni in the middle of a street in Manhattan, New York, shocking both the medical community and American society as a whole.