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The Department of Justice is currently investigating UnitedHealth Group for potential fraud tied to its Medicare Advantage program.

On Thursday, the company acknowledged the investigation and stated that it is working with authorities on both the civil and criminal aspects of the case.

The probe focuses on whether UnitedHealth made patients appear sicker than they really were in order to get more money from the Medicare Advantage program.

According to CBS News, these plans are privately managed versions of Medicare, mainly used by Americans age 65 and older.

UnitedHealthcare, a part of UnitedHealth Group, currently covers more than 8 million people through these plans.

In a filing with the Securities and Exchange Commission, UnitedHealth stated, "We have a long record of responsible conduct and effective compliance." The company added that it is working closely with the DOJ and has started a third-party review of its billing practices and internal policies.

Reports from The Wall Street Journal earlier this year revealed that doctors were interviewed about whether they were pressured to submit certain diagnoses.

DOJ Investigates UnitedHealth After Reports of Overbilling

Some of these may have led to extra payments from the federal government. Although UnitedHealth denied any wrongdoing at the time, the company now says it reached out to the DOJ after seeing media reports about the probes.

A special master assigned to a previous DOJ lawsuit involving UnitedHealth had said the government lacked strong evidence.

The company also claims that federal audits support the accuracy of its Medicare billing methods.

Despite these defenses, Thursday's news added to the company's challenges. UnitedHealth's stock dropped nearly 2%, falling to $287.54 per share.

The company has already had a rough year, including the unexpected exit of its CEO Andrew Witty in May and the earlier tragic death of UnitedHealthcare's CEO Brian Thompson in December.

Jared Holz, a health-care strategist at Mizuho Securities, said the DOJ investigation "is not shocking," especially given the company's prior denials. He believes UnitedHealth's decision to cooperate is the right step forward, CNBC reported.

The Medicare Advantage segment is a major part of UnitedHealth Group's business, bringing in $139 billion in revenue last year.

Executives are expected to address the situation during their next earnings call on July 29.