UnitedHealth confirms federal investigation into its Medicare practices
The health insurer, which has been in upheaval since the murder of one of its top executives late last year, said in a statement it reached out to the Justice Department after media reports about the investigations.
'The Company has now begun complying with formal criminal and civil requests from the Department,' it said. 'The Company has full confidence in its practices and is committed to working cooperatively with the Department throughout this process.'
The Justice Department is investigating UnitedHealth for potential criminal fraud in its Medicare Advantage program, the Wall Street Journal reported in May. The company is one of a number of insurers that the federal government contracts with to provide Medicare coverage to senior citizens and other enrollees.
UnitedHealth reiterated on Thursday that it has launched third-party reviews of various policies and practices, including the codes it uses to evaluate patients' health status, its managed care practices and its pharmacy services.
The investigation is the latest crisis for the nation's top insurer, which is also one of America's biggest corporations. The CEO of its health insurance unit, Brian Thompson, was gunned down on a New York City sidewalk in December, which unleashed a torrent of angry social media posts about care denials by UnitedHealth and other insurers.
Andrew Witty, its former CEO, stepped down abruptly in May, shortly after the company suspended its financial outlook for the year, citing continued higher-than-expected costs in its Medicare Advantage program. UnitedHealth's former longtime CEO, Stephen Hemsley, has returned to lead the company.
UnitedHealth's (UNH) stock has lost about half its value over the past year – more than $277 billion. It was down about 3.6% in late morning trading Thursday.
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