UnitedHealth Faces DOJ Investigation: Medicare Advantage Practices Under Scrutiny

Shares of UnitedHealth Group plummeted after it revealed a Department of Justice investigation. The probe focuses on possible civil fraud in Medicare Advantage billing. UnitedHealth is cooperating with authorities, ensuring transparency in their dealings. News of the investigation led to a 4% drop in company shares.

Shares of UnitedHealth Group saw a significant drop early Thursday following the announcement of a Department of Justice investigation into the company's practices.

The health care giant reported that it is responding to both criminal and civil inquiries made by federal investigators regarding its Medicare Advantage billing.

The investigation reportedly began earlier this year, sparked by concerns over how UnitedHealth records diagnoses for its Medicare Advantage plans, potentially leading to extra payments.

(With inputs from agencies.)