The U.S. Department of Justice (DOJ) is conducting a criminal investigation into UnitedHealth Group regarding possible Medicare fraud, according to a report by the Wall Street Journal. UnitedHealth claims it hasn’t been formally notified about the investigation and maintains the integrity of its Medicare Advantage program. Following the news, the company’s stock dropped 8% in after-hours trading. Recent months have been challenging for UnitedHealth; CEO Andrew Witty unexpectedly resigned, and the company withdrew its 2025 financial forecast due to rising medical costs, causing shares to plummet nearly 18%. Stephen Hemsley has returned as interim leader following several setbacks, including the murder of Brian Thompson, CEO of its insurance unit. The DOJ’s healthcare-fraud unit is overseeing the investigation, which centers on UnitedHealth’s Medicare Advantage business practices. Although specifics remain unclear, the probe has been ongoing since at least last summer. Last week, UnitedHealth disclosed involvement in various governmental investigations without providing details. In February, a civil fraud investigation into its Medicare practices was reported, and U.S. Senator Chuck Grassley launched an inquiry into its billing practices. UnitedHealth shares have fallen approximately 40% this year amid broader scrutiny of the Medicare Advantage program.
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