UnitedHealth Group stock crashes as DOJ opens fraud probe – Crypto News – Crypto News
Connect with us
UnitedHealth Group stock crashes as DOJ opens fraud probe UnitedHealth Group stock crashes as DOJ opens fraud probe

others

UnitedHealth Group stock crashes as DOJ opens fraud probe – Crypto News

Published

1 year ago

on

  • UnitedHealth Group stock slides hard as DOJ opens investigation.
  • Government probe involves possible fraudulent overcharging of Medicare Advantage plans.
  • UNH stock slides as low as 438.50, a 10-month low.
  • Health insurer calls allegations “false” and “outrageous”.

 

UnitedHealth Group (UNH) stock crashed on Friday morning in light of a new United States (US) Department of Justice (DOJ) probe into possible overcharging of the federal government entity for retiree health services.

UNH stock plunged as much as 12.7% at the open, but shares are now down about 9% closer to lunchtime near $457.

UnitedHealth Group is one of the largest holdings in the Dow Jones Industrial Average (DJIA), which has sunk 0.88% at the time of writing, slightly worse than the NASDAQ. Besides UNH, Alphabet (GOOGL) is dealing with charges from European Union regulators, while Hims & Hers Health (HIMS) and Arbor Realty Trust (ABR) both sink by double digits.

UnitedHealth Group news

The US Department of Justice has opened a civil fraud investigation into the business practices of the country’s largest private health insurer, according to The Wall Street Journal. 

At stake is whether UnitedHealth purposely overcharged Medicare Advantage plans by adding false diagnoses to some beneficiaries’ medical records. Medicare Advantage plans are government healthcare plans that are managed by private health insurers in the US.

It is somewhat shocking to the market since the probe is coming during the Trump administration, which is viewed as more lax in regulatory oversight and a proponent of deregulation. The Journal also says that the Office of Inspector General at the US Department of Health & Human Services is also involved in the investigation, but none of the government agencies are publicly commenting or confirming the news. 

For its part, a UnitedHealth spokesperson called the allegations “outrageous” and “false”.

UnitedHealth has garnered a number of negative headlines over the past year. One year ago, the same DOJ launched an antitrust probe into UnitedHealth. Last November, it sued to stop UnitedHealth’s proposed acquisition of Amedisys (AMED). Then in early December of last year, Luigi Mangione, an individual angered at the company’s unpopular practice of denying coverage, shot and killed a top executive at the health insurer in Manhattan, leading to a manhunt.

UnitedHealth Group stock chart

UnitedHealth Group stock was already in a downtrend, seeing as the 50-day Simple Moving Average (SMA) had drifted below the 200-day SMA by late January. That pattern is often referred to as the Death Cross and is viewed as a bearish long-term signal. The Moving Average Convergence Divergence (MACD) indicator shows a strong bearish crossover, so many will expect the downtrend to continue.

UNH stock found support at $438.50 soon after Friday’s open, which is close to the April 12, 2024, low at $446.38. Shareholders will hope the sell-off haults here. A break of that support level would make the November 2021 support in the $380s come into view. 

Bulls will take it as a positive sign if UNH trades back above $475, which worked as support as recently as mid-December.

UNH daily stock chart

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending