• UnitedHealth Group is under investigation for civil and criminal practices related to Medicare.
• The company maintains confidence in its practices and is cooperating with federal authorities.
• Recent events including CEO changes and a fatal shooting have contributed to stock value decline.

UnitedHealth Group has disclosed that it is under investigation by the Department of Justice (DOJ) for both civil and criminal matters related to its Medicare practices. The company is complying with formal requests from federal investigators and stated it “has full confidence in its practices and is committed to working cooperatively with the Department throughout this process,” according to CBS News and ABC News.

The investigations reportedly focus on potential Medicare fraud, particularly on how UnitedHealth records diagnoses that may lead to increased payments for its Medicare Advantage plans. This investigation follows prior concerns regarding the billing practices of the company, which covers more than 8 million beneficiaries, making it the nation's largest Medicare Advantage provider, according to HuffPost and ABC News.

UnitedHealth's stock has seen significant decreases, reported to be down 55% since its peak last fall, reflecting investor concerns regarding its ongoing issues. The stock was reported at $282.16, a 3% drop during midday trading on Thursday following the announcement of the federal investigation, according to CBS News and HuffPost.

This investigation adds to a series of challenges for UnitedHealth in the past year, including the high-profile fatal shooting of its CEO, Brian Thompson, and subsequent leadership changes. UnitedHealth indicated that it reached out to the DOJ proactively regarding these investigations, signaling its willingness to cooperate, as noted by ABC News and HuffPost.