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The Justice Department launched an investigation in recent months into UnitedHealth’s Medicare Billing practices, according to the Wall Street Journal, which cited people familiar with this matter.
In premarket trading, shares of the company dropped nearly 7% to $466.88.
The report added that the new civil fraud probe is looking at UnitedHealth’s methods for recording diagnoses that trigger additional payments to its Medicare Advantage Plans, including physician groups owned by the insurance giant. The DOJ and UnitedHealth didn’t immediately respond to our requests for comment.
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