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A fraud case is underway against UnitedHealth Group in the United States, The Wall Street Journal reports . The CEO of the insurance division of this company was shot and killed by Luigi Mangioni.
The Justice Department's criminal division's health care fraud unit is overseeing the investigation, which has been active since last summer. The agency typically investigates inflated prices and kickbacks in government health care programs. A UnitedHealth spokeswoman said the company was not notified of the criminal investigation.
The prosecution is part of a broader range of cases against UnitedHealth, including investigations into Doctor:Kami's Medicare billing and antitrust investigations into health care market violations.
In 2024, the company faced a hack in its technology division that disrupted payments to U.S. health care providers for months, as well as the murder of insurance executive Brian Thompson. Now, UnitedHealth shares have taken a hit, losing nearly 50% of their value over the past month. The company is alleged to have committed Medicare Advantage fraud. Medicare Advantage is a private insurance plan that can cover hospital-based health care costs not covered by basic insurance .
Medicare Advantage insurers pay extra to cover the costs of more severely ill patients. That created an incentive for dire diagnoses: In some cases, UnitedHealth's dubious diagnoses added billions of dollars in taxpayer costs, people familiar with the investigation said. Regulators accuse insurers of exaggerating the extent of patient illness to increase profits.
The Trump administration and the US Congress are actively seeking to reduce federal health care spending, which is a source of revenue for insurance companies, including UnitedHealth.
Luigi Mangione was detained in December at a McDonald's in Pennsylvania. He was carrying several fake IDs and a weapon believed to have been used in the murder of the head of UnitedHealthcare. The manifesto, which was found by Mangioni, notes that while the market capitalization of insurance companies is growing, American life expectancy remains stagnant.
Mangione suffered from chronic back pain due to misaligned vertebrae that were pinching his spinal cord. Police say the hatred toward the health insurance system and UnitedHealthcare in particular may be linked to the surgery and possible subsequent denial of insurance coverage.
Mangione has pleaded not guilty to murder and stalking charges against the UnitedHealthcare chief. Federal prosecutors in Manhattan are seeking the death penalty against Mangione, saying he intentionally killed UnitedHealthcare CEO Brian Thompson. Judge Margaret Garnett asked Mangione about his guilty plea, to which he replied, "Not guilty."