File Photo: Down Jones Industrial Average Stock Market Index Public Company UnitedHealthCare logo is displayed on April 13, 2016 Cypress, California.
Mike Blake | Reuters
As insurance giants work hard with one Reported to the government investigation In its medical insurance billing practice, Employee acquisition Potential layoffs and open clashes with billionaire Bill Ackman.
These developments in recent days have prolonged turmoil over the past year, the company’s parent company UnitedHealth Group,by kill In executives, it is a costly cyber attack that violates the high medical expenses of its subsidiaries and its insurance sector. UnitedHealth Group is the largest healthcare group in the United States based on revenue and market capitalization of more than $420 billion, while UnitedHealthCare is the largest private insurer in the United States.
UnitedHealth Group shares have fallen about 23% over the past three months.
The stock also fell 9% on Friday after reports on the investigation. Report first Written by The Wall Street Journal. According to the newspaper, the Justice Department has conducted civil fraud investigations into UnitedHealth’s Medicare Advantage program in recent months.
The journal says the survey specializes in whether diagnosis is frequently conducted to trigger additional payments in these plans, including insured-owned physician groups. It’s in Series of articles Last year’s newspaper reported that Medicare paid billions of dollars in United Health for suspicious diagnosis.
Private insurers offer health insurance benefits plans that are tax rates paid by the government to manage health care for older people seeking additional benefits in search of additional benefits that are not covered by traditional health insurance. Last year, these plans have been a high source of health care expenses for the wider insurance industry.
In a statement, UnitedHealth called the journal’s report “misinformation” and said the company always performed at the industry’s “highest level” when government compliance reviews Medicare Advantage Plann
“Any fraud that suggests us is outrageous and false,” the company said.
In a Friday’s research note, Ben Hendrix, a capital market analyst at Royal Bank of Canada, called the reported investigation “incremental overhang” but stressed that it could be “a long process and in our It is believed that it will lead to financial headwinds in the near future”. He pointed Detection The Justice Department launched a potential antitrust violation last year on the company’s subsidiary, Optum RX, which has an extended timeline before any solution.
The investigation comes two days after CNBC first reported that UnitedHealthCare offers an acquisition to employees, layoffs can be made if the quota for resignation is not met. This move is as companies try to cut costs by leveraging efforts such as digital technology.
Earlier this month, Ackman, one of the world’s most prominent investors, publicly assured a dispute with UnitedHealth Group for legal fees for Texas doctors, said the company pulled her out of a surgery to Prove that the patient’s care is reasonable.
Ackman, CEO of Pershing Square Capital Management UnitedHealth’s lawyer told him The doctor claimed that what he amplified on social media was incorrect. Ackerman said he has no position at UnitedHealth.
One of his earlier posts on the dispute called for the SEC to investigate the company and suggested that the insurer’s profitability greatly exaggerate the necessary procedures for its medical care. ”
This is similar to the public strike back the company faced after it was killed by UnitedHealthCare CEO Brian Thompson in December. It has set off a wave of anger and resentment towards the insurance industry and has renewed calls for reforms to prevent denial of care.
UnitedHealth is still in the impact of a cyberattack on its subsidiary Change Change Healthcare, which handles medical claims. The cyber attacks have damaged protected health information of about 190 million people, and the United Nations Health has paid more than $3 billion to affected providers.
UnitedHealth said it was aware of the cyber attack a day a year ago to Friday.
