UnitedHealth Medicare Fraud: UnitedHealth Group is in the spotlight after reports said the Department of Justice might be looking into the company for possible criminal healthcare fraud. The investigation is said to focus on its Medicare Advantage program, which earns the company a huge amount of money.
The details of the accusations are not clear yet, but reports say the DOJ’s healthcare fraud unit has been looking into UnitedHealth since mid-2024. The company denies receiving any contact from the government and strongly called the news “deeply irresponsible.” They also said they stand firmly behind their Medicare Advantage business.
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The investigation follows previous reports that UnitedHealth may have manipulated diagnoses through in-home health risk assessments and chart reviews, leading to inflated payments. In 2021, such practices reportedly resulted in $8.7 billion in additional payments to the company .
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This investigation news comes while UnitedHealth is already dealing with several big problems. Earlier this year, a group of people filed a class-action lawsuit against the company, accusing it of using artificial intelligence instead of doctors to deny Medicare Advantage claims.
The lawsuit says this practice sometimes led to serious harm, even death. On top of that, UnitedHealth faces a civil fraud case accusing it of submitting fake patient diagnoses to get more money. This case, started by a whistleblower and supported by the government, could involve up to $2 billion in questionable bills. Although a court advisor suggested dropping the case due to weak evidence, the judge has not made a final decision.
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Adding to the pressure, UnitedHealth’s CEO Andrew Witty suddenly announced he is leaving the company. The former CEO, Stephen Hemsley, will return to lead the company for now. The company says Witty is leaving for personal reasons, but the timing has made people curious. Meanwhile, UnitedHealth also stopped its financial forecast for 2025, blaming higher medical costs in the Medicare Advantage program.
Because of all these troubles, the company’s stock price fell 16%, hitting its lowest point in five years. They are also fighting another lawsuit from the DOJ over their planned merger with home healthcare company Amedisys. Regulators worry this deal could give UnitedHealth too much control over the home health market.
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