UnitedHealth Faces DOJ Investigations, Executive Resignation Amid Stock Collapse

UnitedHealth Group, the largest private health insurer in the U.S., is facing a severe crisis marked by a nearly 50% decline in its stock price since mid-May, the worst annual performance in over a decade. This downturn is driven by unexpected profit drops in its Medicare Advantage program and Optum Health unit, compounded by new Medicare reimbursement rules that have tightened billing codes and reduced profitability. The situation led to the abrupt resignation of CEO Andrew Witty and the reinstatement of former CEO Stephen Hemsley as the company seeks to stabilize operations and regain investor confidence. Adding to the company's challenges are ongoing criminal and civil Department of Justice investigations into alleged questionable Medicare billing practices, which pose significant legal and financial risks. These combined operational, financial, and legal pressures have eroded investor and public confidence, raising doubts about UnitedHealth’s ability to restore its market position and deliver value without compromising care. The healthcare industry watches closely as UnitedHealth prepares to release its second-quarter earnings report amid these mounting difficulties.