UnitedHealth stock drops 17% after report it is being probed by DOJ for alleged Medicare fraud

Core Viewpoint - UnitedHealth Group is under investigation by the Department of Justice for potential Medicare fraud, leading to a significant drop in its stock price by 17% and over 50% in the past month [1][2][8]. Investigation Details - The DOJ's criminal healthcare fraud unit is overseeing the investigation, which focuses on whether UnitedHealth manipulated Medicare Advantage billing practices to inflate patient risk scores and improperly increase federal payments [1][2][6]. - The investigation began last year but was not disclosed until recently, contributing to increased scrutiny of the company [1][3]. Company Response - UnitedHealth has stated that it has not been notified of the investigation and maintains the integrity of its Medicare Advantage program [2][8]. - The company has previously dismissed allegations of fraudulent billing practices as "misinformation" [5][8]. Additional Context - The company is also facing civil and antitrust investigations, as well as the fallout from a cyberattack that disrupted payments to providers and the murder of a top executive [3][5]. - An internal email acknowledged that the government had inquired about Optum's coding practices, indicating that the investigation is in its early stages [6][9]. Financial Implications - The stock price decline reflects investor concerns over the ongoing investigations and potential financial repercussions, with the company facing a civil whistleblower lawsuit alleging $2 billion in unsupported diagnoses [1][9]. - Despite a recommendation to dismiss the whistleblower case due to insufficient evidence, the DOJ has urged the judge to reject this recommendation, indicating ongoing legal challenges for the company [10].