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UnitedHealth Faces Crisis After Nursing Home Payment Allegations and Regulatory Scrutiny

The insurer's stock plunges over 6% following a Guardian investigation, as CMS announces expanded audits and leadership struggles continue.

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Overview

  • A Guardian investigation revealed UnitedHealth allegedly paid nursing homes bonuses to reduce hospital transfers, raising concerns about patient safety.
  • The U.S. Department of Justice previously investigated these claims and declined to pursue them, citing significant factual inaccuracies in the allegations.
  • UnitedHealth's stock has dropped over 6% following the report, contributing to a nearly 40% decline year-to-date and a $140 billion market cap loss since April.
  • The Centers for Medicare & Medicaid Services announced plans to expand annual audits of Medicare Advantage contracts, increasing regulatory pressure on the insurer.
  • Stephen Hemsley has returned as CEO to navigate the company through ongoing legal, financial, and reputational challenges after Andrew Witty's abrupt resignation.