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UnitedHealth Group (NYSE:UNH), a healthcare giant with over $410 billion in annual revenue and a market value exceeding $265 billion, announced it has started complying with formal criminal and civil requests from the U.S. Department of Justice regarding aspects of its participation in the Medicare program. The company stated it proactively contacted the Department of Justice after reviewing media reports about related investigations.
According to a statement released in a press release and filed with the Securities and Exchange Commission, UnitedHealth Group expressed confidence in its practices and said it is committed to working cooperatively with the Department of Justice throughout the process. The company’s strong position is reflected in its "GREAT" financial health score according to InvestingPro analysis.
The company also noted that it has a history of compliance, referencing independent audits by the Centers for Medicare & Medicaid Services (CMS) and a previous decade-long civil challenge by the Department of Justice to its Medicare Advantage business, which concluded with a court-appointed Special Master finding no evidence of wrongdoing.
UnitedHealth Group stated it has initiated its own third-party reviews of policies, practices, and performance metrics related to risk assessment coding, managed care practices, and pharmacy services to provide transparency to stakeholders.
The company said it remains committed to maintaining the integrity of its business practices. With a 33-year track record of consistent dividend payments and currently trading below its Fair Value, UnitedHealth Group maintains a strong market position. The information is based on a press release statement included in the company’s SEC filing. For deeper insights into UnitedHealth’s financial health and growth prospects, including 10+ additional exclusive ProTips, check out the comprehensive analysis available on InvestingPro.
In other recent news, UnitedHealth Group has undergone several notable developments. The company is facing a Department of Justice investigation into its Medicare billing practices, focusing on the methods used to gather diagnoses that may have increased Medicare payments. In leadership changes, Mike Cotton has been appointed as the new head of UnitedHealth’s Medicaid insurance segment, while Bobby Hunter will now oversee both Medicaid and Medicare businesses as CEO of government programs. Additionally, Amar Desai has stepped down as CEO of the Optum Health care delivery unit, with Patrick Conway taking over the role. On the financial front, Wolfe Research has lowered its price target for UnitedHealth to $330, citing pressures on the company’s 2025 earnings outlook and adjusting its earnings per share estimate to $18.00. Similarly, Leerink Partners reduced its price target to $340, maintaining an Outperform rating but noting fading investor expectations. These developments highlight significant shifts in UnitedHealth’s operational and financial landscape.
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