DOJ probes UnitedHealth's Medicare billing practices, WSJ reports; shares tumble
Published On Feb 21, 2025, 8:06 AM
The U.S. Department of Justice (DOJ) is investigating UnitedHealth's Medicare billing practices, particularly in how it records diagnoses to receive additional payments for its Medicare Advantage plans. This news has caused a nearly 10% drop in UnitedHealth shares in premarket trading, which reflects concerns not only about the investigation but also about potential impacts on the company's financial performance. The DOJ's scrutiny comes amid ongoing challenges for UnitedHealth, including previous lawsuits and a cyberattack affecting its tech division.
Stock Forecasts
UNH
Negative
The ongoing investigation may lead to regulatory penalties, which could adversely affect UnitedHealth's revenue and profitability. The significant drop in share value indicates investor concern over potential long-term implications of the investigation and ongoing litigation. Furthermore, the healthcare sector is experiencing increased scrutiny overall, which may affect sentiment around healthcare stocks including UnitedHealth’s peers.
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