Palumbo Wealth Administration CEO & CIO Philip Palumbo discusses UnitedHealth Group market developments and extra on ‘The Claman Countdown.’
UnitedHealth Group shares fell greater than 15% in early morning buying and selling on Thursday, after The Wall Avenue Journal reported that the U.S. Division of Justice was investigating the corporate for potential Medicare fraud.
Buyers and analysts famous that whereas particulars on the investigation had been restricted, they did heighten investor considerations.
Ticker Safety Final Change Change % UNH UNITEDHEALTH GROUP INC. 256.11 -51.85
-16.84%
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“The stock is already in the doghouse with investors, and additional uncertainty will only pile on,” stated James Harlow, senior vp at Novare Capital Administration, which owns shares in UnitedHealth.
The corporate, nonetheless, stated that it had not been notified by the DOJ concerning this prison investigation.
Andrew Witty, chief government officer of UnitedHealth Group Inc., arrives for a Senate Finance Committee listening to in Washington, D.C., on Might 1, 2024. (Al Drago/Bloomberg through Getty Photographs / Getty Photographs)
“UnitedHealth Group is mired in a crisis seemingly without end. Investors are bracing for another big bout of turbulence given reports of the DOJ investigation,” stated Susannah Streeter, head of cash and markets at Hargreaves Lansdown.
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If premarket losses maintain, UnitedHealth’s market capitalization will contact $280 billion, or virtually half of the $530 billion recorded on April 16, a day earlier than a shock earnings miss sparked a selloff in its shares.
The medical insurance trade has come underneath authorities scrutiny after a lawsuit this month accused three main U.S. insurers of paying kickbacks to brokers to steer sufferers into their plans.
In February, the WSJ revealed a civil fraud investigation into UnitedHealth’s Medicare practices, whereas U.S. Senator Chuck Grassley launched an inquiry into the corporate’s billing strategies, demanding detailed compliance information.
Sen. Chuck Grassley (R-IA) speaks with reporters earlier than a vote on the U.S. Capitol Constructing earlier than a Senate Luncheons on October 19, 2021 in Washington, DC. (Anna Moneymaker/Getty Photographs / Getty Photographs)
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For many years, the corporate has flourished by leveraging its dominance in insurance coverage and development within the Medicare market, the U.S. authorities program that covers medical prices for the aged.
This streak of robust efficiency got here underneath stress simply months after a senior government was tragically killed, allegedly by a person enraged over insurer practices.
