UPDATED: Aug. 26 at 5 p.m. ET
The Department of Justice's ongoing criminal investigation into UnitedHealth Group extends beyond Medicare Advantage, according to a new media report.
Bloomberg cited individuals with knowledge of the matter who said that DOJ is also probing billing practices at Optum Rx and how UnitedHealth reimburses its own physicians.
No charges or concrete allegations have emerged from the investigation so far, but the feds casting a wider net than was previously reported could raise further questions from investors. The company's stock dipped mid-afternoon on Tuesday after the Bloomberg report was published.
UnitedHealth said in a filing with the Securities and Exchange Commission, issued last month, that it "has full confidence in its practices and is committed to working cooperatively with the Department throughout this process."
UPDATED: July 24 at 10 a.m. ET
UnitedHealth Group formally acknowledged an ongoing federal investigation into its Medicare Advantage practices for the first time Thursday in a new securities filing.
In the Securities and Exchange Commission document, UHG said it reached out "proactively" to the Department of Justice (DOJ) following media reports that the investigation was underway. The healthcare giant said it has "now begun complying with formal criminal and civil requests from the Department."
UnitedHealth also reiterated commentary made by executives earlier this year that it also conducting a third-party review of practices to ensure compliance.
"The company has a long record of responsible conduct and effective compliance," the company said in the filing. "Independent CMS audits confirm that the company’s practices are among the most accurate in the industry, and, following a decade-long civil challenge by the Department to aspects of our Medicare Advantage business, a court-appointed Special Master concluded there was no evidence to support claims of wrongdoing."
"The company is committed to maintaining the integrity of its business practices and serving as reliable stewards of American tax dollars," they added.
UnitedHealth Group will host its second-quarter earnings call on July 29, and all eyes will be on the company. Shares in UHG were down slightly on Thursday morning following the news, by about 1.5% at 10 a.m. ET.
The DOJ is interviewing former employees as part of its criminal Medicare fraud probe into UnitedHealth, according to a report in The Wall Street Journal.
The newspaper first reported in May that the DOJ had commenced a criminal investigation into UnitedHealthcare. Sources familiar with the proceedings told the outlet that agency investigators have been digging into how the insurer may have been deploying clinicians to increase diagnoses that may have led to overpayments.
Former employees interviewed as part of the investigation said that at times the FBI and the Department of Health and Human Services inspector general's office were involved, according to the report.
Some of the doctors said that they were questioned about any special training they may have received around recording diagnoses, and how patients were contacted for testing around "lucrative" conditions.
In a statement to the newspaper, UnitedHealth said it welcomes "regular reviews of our policies and practices."
In May, when the WSJ first reported on the investigation, the company said it had not been notified of the proceedings. The Department of Justice is also reportedly conducting an antitrust probe into UnitedHealth Group, with particular emphasis on the relationship between its UnitedHealthcare and Optum units.
The healthcare giant is still reeling from a series of setbacks and financial challenges. Former CEO Stephen Hemsley returned to the post earlier this year and has committed to working to right the ship.
UnitedHealth's stock price dipped following the Wall Street Journal report, after being dragged down earlier this week by bad news in the Affordable Care Act exchange market coming from two of its peers, Centene and Molina Healthcare.