MINNETONKA (dpa-AFX) - UnitedHealth Group (UNH) shares slipped 8% on Friday morning hurt largely by a report that the U.S. Department of Justice is investigating the healthcare giant's Medicare billing practices.
According to The Wall Street Journal, the DOJ is investigating whether UnitedHealth tends to over-diagnose conditions that can earn extra payouts from the Medicare Advantage program.
The newspaper had reported on allegations of the practice in December, with doctors telling the outlet they were trained to 'document revenue-generating diagnoses, including some they felt were obscure or irrelevant.'
However, the company refuted the Wall Street Journal's claims, stating the report was misinformation.
'The Wall Street Journal continues to report misinformation on the Medicare Advantage (MA) program. The government regularly reviews all MA plans to ensure compliance and we consistently perform at the industry's highest levels on those reviews. We are not aware of the 'launch' of any 'new' activity as reported by the Journal. We are aware, however, that the Journal has engaged in a year-long campaign to defend a legacy system that rewards volume over keeping patients healthy and addressing their underlying conditions. Any suggestion that our practices are fraudulent is outrageous and false,' the company said in a statement.
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