UnitedHealth Group, the largest health insurer in the US, is facing a significant setback as its shares plummeted following reports of a criminal Medicare fraud investigation by the US Department of Justice. The investigation, ongoing since last summer, has caused a sharp decline in UnitedHealth’s stock value, which has halved since the beginning of the year. This latest development comes after the company’s CEO, Andrew Witty, announced his resignation for personal reasons earlier in the week, alongside the suspension of the firm’s full-year financial outlook due to higher-than-expected medical costs.

The challenging period for UnitedHealth began with the tragic targeting and killing of its executive, Brian Thompson, in December. The company, which has thrived by capitalizing on its dominance in insurance and the Medicare market, faces scrutiny not only from the Department of Justice but also from US Senator Chuck Grassley, who has initiated an inquiry into the company’s billing practices.

Despite the allegations, UnitedHealth has maintained its stance on the integrity of its Medicare Advantage program, emphasizing that it has not been officially notified of any criminal investigation. The justice department’s response to these allegations remains pending. With the company’s future uncertain amidst legal challenges and market turbulence, the situation underscores the complexities and risks faced by major players in the healthcare industry.

(Source: The Guardian)