UnitedHealth Faces Legal Scrutiny Over Medicare Billing

In a dramatic turn of events, UnitedHealth Group saw its shares tumble by 16% following revelations of a Department of Justice (DOJ) criminal investigation into its Medicare billing practices. The news, first reported by the Wall Street Journal, has sent shockwaves through the market.

Details of the Investigation

The probe, which reportedly commenced last summer, zeroes in on the operations of UnitedHealth's Medicare Advantage business. This investigation compounds the company's existing challenges, including scrutiny over civil Medicare billing issues and antitrust concerns.

Market Reaction

By 9:37 am ET, UnitedHealth's stock was trading at $258.29, marking a 16.14% decline. This represents the most significant drop the company has experienced since April 2020, highlighting the severity of the situation.