BUZZ-UnitedHealth hits 10-month low on report of DOJ's probe into company's Medicare billing practices

Updates

Shares of healthcare conglomerate UnitedHealth UNH.N fall as much as 13% to a 10-month low of $438.50

UNH set to lose nearly $40 billion in market cap if losses hold

U.S. Department of Justice launched investigation into company's Medicare billing practices in recent months, the Wall Street Journal reports, citing people familiar with the matter

DOJ's new civil fraud investigation is examining UNH's practices for recording diagnoses that trigger extra payments to its Medicare Advantage plans, according to the report

*UNH says the report contained "misinformation" about its Medicare Advantage plans, pointing to regular reviews by the government to ensure compliance

The company said it was "unaware of the launch of any new activity by the regulator"

"At this early stage, we caution investors against jumping to conclusions around the potential outcomes of this reported civil investigation" - J.P.Morgan analysts

"It's important to remember that this is a civil investigation, which does not guarantee litigation" - J.P.Morgan analysts

Stock down ~5% in last 12 months