Rumored Fraud Investigation Into Medicare Sinks UnitedHealth Shares by Over 15%

Key Moments:

Federal Probe Drives Shares Lower

Thursday saw UnitedHealth Group’s stock price plunge over 15% after a report revealed that the company is subject to a criminal investigation by the US Department of Justice. The scrutiny reportedly centers on possible fraud tied to Medicare. At press time, UnitedHealth is the worst-performing stock on the S&P 500.

Criminal Division Targeting Medicare Advantage

According to The Wall Street Journal, anonymous sources have indicated that the DOJ’s criminal division, specifically its healthcare-fraud unit, is conducting the investigation. The target of the probe is said to be centered around UnitedHealth’s Medicare Advantage division. As reported by the WSJ, the investigation has been underway for months and is said to have been launched sometime last summer at the earliest.

In an official statement, UnitedHealth disputed the report, stating that it had received no notification from the Department of Justice regarding the alleged criminal investigation. UnitedHealth further affirmed its confidence in the integrity of the Medicare Advantage program.

Market Reaction Amplified by Executive Turnover

This development adds further pressure on UnitedHealth shares, which had already fallen 18% just two days earlier. That prior decline followed the unexpected resignation of CEO Andrew Witty. The company’s decision to suspend its financial outlook for 2025 also played a role in this week’s steep drop in value.