US justice department opens civil fraud investigation into UnitedHealthcare

Group 1 - The US Department of Justice is investigating UnitedHealthcare for potential illegal practices related to Medicare billing, specifically whether the company is using patient diagnoses to inflate payments from the Medicare Advantage program [1][3][6] - UnitedHealthcare is a major player in the insurance industry with a market capitalization of $457 billion and is involved in various sectors including health technology and pharmacy benefits, employing over 90,000 physicians in the US [2][3] - Medicare Advantage plans, which cover about half of the 65 million Medicare beneficiaries, are under scrutiny for potentially costing taxpayers significantly more than traditional Medicare, with estimates suggesting an additional$83 billion in 2024 alone [4][5] Group 2 - The investigation is being conducted by the Department of Justice's civil fraud division and the Department of Health and Human Services, separate from an ongoing antitrust inquiry [6] - UnitedHealthcare has faced criticism for other issues, including a significant data breach in 2024 affecting 85 million patient records, which has been likened to a major disaster in the healthcare sector [7] - The company's stock fell by 10% following the news of the investigation, indicating market concern over the potential implications of these allegations [9]