UnitedHealth Group shares fell after it was reported that the largest health insurance company in the United States was investigating possible criminal fraud.
The U.S. Department of Justice has been investigating the health insurance giant since last summer, the Wall Street Journal reportedly cites unnamed people who are familiar with the issue.
UnitedHealth shares deepened a tough market defeat, falling 16.5% during early trading in New York on Thursday. That inventory has been in half since the turn of the year.
Earlier this week, the vast healthcare company announced that CEO Andrew Whitty had resigned for personal reasons after suspending its full-year financial outlook for higher than expected healthcare costs.
It was a penalty period for United Health since December, when executive Brian Thompson was targeted and killed outside a hotel in New York City.
Medicare is like that US Government-run health insurance programs for seniors and disabled people, Medicare Advantage is a program in which private health insurance companies sign up with Medicare programs to provide health benefits.
UnitedHealth said: “In today’s Wall Street Journal, we have not been notified by the Department of Justice that we believe are being reported without official attribution.
“We support the integrity of the Medicare Advantage program,” the company added.
The Department of Justice did not immediately respond to requests for comment.
Earlier this year, the Journal reported that civil fraud investigations have been launched in UnitedHealth’s Medicare practices, and U.S. Sen. Chuck Grassley launched an investigation into how the company claims by requesting detailed compliance records.
For decades, the company has thrived by leveraging the insurance and growth advantages of the Medicare market, a US government program that covers healthcare costs for seniors.
The Associated Press and Reuters contributed to the report