The Department of Justice (DOJ) is investigating UnitedHealth Group (NYSE: UNH) for potential criminal fraud related to Medicare, the Wall Street Journal reported on Wednesday.
Following the news, UnitedHealth’s shares fell 6.5% in after-hours trading, reaching their lowest level in nearly five years.
According to sources familiar with the matter cited by the WSJ, the DOJ’s healthcare-fraud unit has been looking into the insurer since at least last summer. The probe focuses on UnitedHealth’s Medicare Advantage business, but specific criminal allegations have not been disclosed.
This investigation adds to UnitedHealth’s existing challenges. The company is also under scrutiny for possible antitrust violations and faces a separate civil probe over its Medicare billing practices.
In a sudden leadership change, UnitedHealth replaced CEO Andrew Witty with Chairman and former CEO Stephen Hemsley earlier this week. This move coincides with the company’s declining stock price in 2025.
UnitedHealth’s troubles come amid potential cuts to federal healthcare spending, a key factor in its profits. Additionally, President Donald Trump is pushing for significant reductions in drug prices under Medicare, which could impact the insurer’s future earnings.
Related topics:
