The impression is triggered by the Unitedhealth probe, WSJ reports; The insurer says this is not aware of
Sriparna Roy and Amina Niasse
(Reuters) – The US Ministry of Justice is investigating Unitedhealth for Medicare’s charge, Wall Street Journal reported on Friday, while the health insurer said he was not aware of any new probe in progress.
The Unitedhealth Group sections have decreased by 7.3%, weights on the wider industrial average DOW Jones, which was dropped more than 1%. The shares of rival insurers were captured in sale and Human reduced 5.5%and CVS health 2.3%.
An investigation into the civic fraud, launched in recent months, examines the practice of recording a diagnosis company that runs additional payments in its plans for the benefits of Medicare, reported the magazine, citing people familiar with this issue.
The newspaper has launched a number of stories in recent months, describing how Unitedhealth has profited from the use of Medicare’s charge rules to its advantage.
Unitedhealth said the report contained misinformation on its plans for Medicare, without giving details.
“The government regularly inspects all plans to ensure compliance, and we are consistently working at the highest levels of the industry at these reviews,” Unitedhealth said in a statement.
The Ministry of Justice refused to comment.
Nearly half of 65 million people covered by Medicare, an American program for people over 65 years of age or with disabilities, is enrolled in Medicare Advantage, which is managed by private insurers. Insurers are paid the set rate for each patient, but more can be paid for patients with multiple health conditions.
The standard coverage of Medicare is managed by the government.
“Investors are sold because it is not difficult to quantify it. It is impossible to truly know at the moment how the investigation will develop and what the final impact will be on the UNH profitability,” said James Harlow, a senior Vice President in Novara Capital Administration, which owns shares of Unitedhealth.
United has several companies, including a large pharmacy manager. Companies margins are already under pressure from growing medical expenses in their insurance business.
The investigated investigation is the last in a series of recent failures for Unitedhealth.
His shares were under pressure because Brian Thompson, who was the executive director of his insurance business, was dead in New York on December 4, which encouraged a conversation with frustration with navigation in the US Insurance System.
Excessive reaction?
With only 15% of Unitedhealth members in Medicare Advantage, a steep fall in the share can be an over -response to a lawsuit, said Julie Uttterback, analyst at Morningstar.
