UnitedHealth, insurer in Luigi Mangione murder case, under probe for possible fraud, WSJ says
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The report comes just after the insurer unexpectedly replaced its chief executive Andrew Witty.
PHOTO: TING SHEN/NYTIMES
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Los Angeles - UnitedHealth Group is under criminal investigation for possible Medicare fraud, the Wall Street Journal (WSJ) reported, citing unidentified people familiar with the matter.
The Justice Department has had a probe into the company’s Medicare Advantage business since at least last summer, according to the people.
The company’s shares fell more than 8 per cent in postmarket trading on May 14. The stock has sunk almost 50 per cent over the past month.
UnitedHealth said in a statement late on May 14 that the Department of Justice had not notified the company about the reported investigation.
“We stand by the integrity of our Medicare Advantage programme,” the statement said.
The report comes just after the insurer unexpectedly replaced its chief executive officer Andrew Witty and suspended earnings guidance, a second surprise for investors after it cut its annual forecast.
The move piled further doubt on the company’s strategy to focus on Medicare, which pushed profit growth for years but has recently faltered.
Insurers’ Medicare Advantage practices have drawn questions in recent years. Companies get paid more for taking care of sicker patients in the programme, with rates determined by the diagnosis codes they submit. Watchdogs and whistleblowers have accused insurers of exaggerating how sick their patients are to boost profits, and some firms have paid large sums to resolve cases.
UnitedHealth faced allegations in a long-running civil Medicare fraud case that it improperly overcharged the US government by more than US$2 billion (S$2.6 billion). The company in March received a favourable finding in that case, bringing it a step closer to winning potential dismissal.
The company hit the headlines for a different reason in 2024 for the murder of a top executive. Mr Brian Thompson, the CEO of UnitedHealth’s insurance division, was shot dead on Dec 4
The brazen killing and ensuing five-day manhunt captivated Americans.
While public officials condemned the killing, some Americans cheered the man accused of his murder, Luigi Mangione, saying that he drew attention to steep US healthcare costs and the power of health insurers to refuse payment for some treatments.
UnitedHealth shareholders filed a lawsuit last week that alleges the company misled investors by concealing the negative business impacts that followed the killing. BLOOMBERG
