UnitedHealth Stock Drops as DOJ Criminal, Civil Probe Targets Medicare Billing

UnitedHealth Group disclosed that it is under investigation by the U.S. Department of Justice concerning its Medicare Advantage billing practices and is cooperating with both criminal and civil inquiries. The probe focuses on whether the company inflated diagnoses to increase government payments, with investigators also interviewing physicians about potential pressure to submit claims for higher reimbursements. Despite the investigation, UnitedHealth emphasized its long-standing commitment to compliance, citing independent audits by the Centers for Medicare and Medicaid Services that rank its billing accuracy among the best in the industry. The company has proactively contacted the DOJ, initiated third-party reviews of its policies, and expressed confidence in its practices. UnitedHealth shares have declined significantly, dropping over 40% this year amid the investigation and other challenges, including the recent fatal shooting of CEO Brian Thompson. The company operates one of the nation’s largest Medicare Advantage businesses, covering over 8 million people, and remains a major player in health insurance and pharmacy benefits management.