Unitedhealth stock plummets after doj probe into healthcare fraud announced

UnitedHealth stock plummets after DOJ probe into healthcare fraud announced

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1 min read
May 15, 2025

The U.S. Department of Justice has launched a criminal investigation into UnitedHealth Group, one of the nation’s largest health insurers, for potential Medicare fraud, according to a report by The Wall Street Journal. The probe, which focuses on the company’s Medicare Advantage business practices, marks a significant escalation in scrutiny for the healthcare giant.

UnitedHealth Group, in a statement, said it has not been notified by the Department of Justice about the reported investigation and defended the integrity of its Medicare Advantage program. The company’s stock took a hit, dropping 32% in the past few days.

The investigation comes at a turbulent time for UnitedHealth, which has faced mounting challenges in recent months, including rising medical costs and leadership changes.

While the exact nature of the allegations remains unclear, the probe is said to have been active since at least last summer, raising questions about the company’s billing practices in its Medicare Advantage plans, which cover millions of Americans.

The news adds to broader concerns about the Medicare Advantage program, which has drawn attention for its payment structures that allow insurers to receive higher reimbursements for patients with more severe health conditions.

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