UnitedHealth stock plunged on Thursday after the company disclosed it was under investigation by the US Department of Justice.
The healthcare conglomerate said it was complying with both criminal and civil requests from the federal agency.
At 12:19 PM EDT, UnitedHealth stock was down 4.15% at $280.38.
So far this year, the stock shed over 40% of its value.
“(UnitedHealth) has a long record of responsible conduct and effective compliance,” the company said in a Securities and Exchange Commission filing.
The DOJ was investigating UnitedHealth’s Medicare business, a US government program that covers medical costs for individuals aged 65 and older and those with disabilities, reported Wall Street Journal earlier this year.
The WSJ said in February, citing anonymous sources, that the probe focused on billing practices in recent months.
The company said it proactively reached out to the DoJ after reviewing the media reports about its participation in the Medicare program, and that it is committed to cooperating with federal authorities.
UnitedHealth expresses confidence in its practices
It expressed confidence in its practices and noted that independent audits by CMS have ranked its methods among the most accurate in the industry.
UnitedHealth further said it has launched its own initiative to conduct third-party reviews of policies, practices, associated processes and performance metrics for risk assessment coding, managed care practices and pharmacy services.
The company also pointed to favorable decision from a court-appointed special master in a decade-long civil challenge by the department to aspects of its Medicare Advantage business, which concluded that there was no evidence to support claims of wrongdoing.
The company’s UnitedHealthcare business covers more than 8 million people as the nation’s largest provider of Medicare Advantage plans.
UnitedHealth Group Inc. runs one of the nation’s largest health insurance and pharmacy benefits management businesses. It also operates a growing Optum business that provides care and technology support.
The company will report its second quarter results next Tuesday.
