Bob Herman Feb 17, 2017
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Justice Department lawsuit puts UnitedHealth in hot water
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A newly unsealed lawsuit alleges UnitedHealth Group "defrauded the United States of hundreds of millions — and likely billions — of dollars" by knowingly submitting false and inflated charges to Medicare, multiple media outlets have reported.

The stocks of UnitedHealth and other insurers that sell Medicare Advantage plans were hammered Friday on the news, and some financial analysts believe the lawsuit will likely "result in additional scrutiny on Medicare Advantage," the private alternative to traditional Medicare coverage. A UnitedHealth spokesman said the company will fight the lawsuit "vigorously," saying it's based on a misinterpretation of Medicare rules.