UnitedHealth stock dropped 2% due to a Department of Justice investigation into its Medicare billing practices. The company is under scrutiny following reports of insurance billing techniques used to receive extra payments from Medicare Advantage. UnitedHealth has been facing a probe into possible Medicare fraud since 2024.

The insurer is cooperating with the Justice Department and conducting third-party reviews of its practices. The Wall Street Journal reported that UnitedHealth, along with other insurers, received billions in extra payments from the Medicare Advantage system through incorrect diagnoses. UnitedHealth has been in the spotlight since the shooting of its UnitedHealthcare CEO in December.

UnitedHealth’s first-quarter earnings report resulted in a 22% drop in shares, the worst single-day performance since 1998. CEO Andrew Witty stepped down in response, and the company retracted its annual forecast. Shares of the insurance giant have plummeted nearly 50% over the last year, reflecting ongoing challenges and uncertainties.

Read more at Yahoo Finance: UnitedHealth stock drops after company confirms DOJ investigation into Medicare billing practices