UnitedHealth drops amid DoJ scrutiny on Medicare practices

UnitedHealth (NYSE:UNH) shares fell ~4% in the premarket on Thursday after the managed care giant disclosed that it has started complying with certain civil and criminal requests from the U.S. Department of Justice related to its Medicare business.

The disclosure came after multiple media reports indicated that UnitedHealth (NYSE:UNH), the leading player in the Medicare Advantage market, has drawn regulatory scrutiny over its operations in the government-run healthcare program.

In May, The Wall Street Journal reported that the DoJ has launched a criminal investigation into possible Medicare fraud at the company. However, UnitedHealth (UNH) denied the report at the time.

Another report from The Guardian, alleging that the company secretly paid nursing homes that helped it win Medicare members, was also denied.

“UnitedHealth Group proactively reached out to the Department of Justice after reviewing media reports about investigations into certain aspects of the Company’s participation in the Medicare program,” the Eden Prairie, Minnesota-based company said in a regulatory filing.

“The Company has now begun complying with formal criminal and civil requests from the Department,” UnitedHealth (UNH) added.