WASHINGTON – Shares of UnitedHealth Group fell more than 13% Thursday after a report revealed the U.S. Department of Justice is conducting a criminal investigation into possible Medicare fraud involving the health care company.
The Wall Street Journal reported late Wednesday that the DOJ is focusing on UnitedHealth’s Medicare Advantage operations.
UnitedHealth responded Thursday, saying it has not been contacted by the DOJ and called the report “deeply irresponsible.” The company defended its practices, stating, “We stand by the integrity of our Medicare Advantage program.”
This marks the second time this year UnitedHealth’s Medicare unit has drawn federal scrutiny. In February, the Journal reported that the DOJ had opened a civil investigation into whether the company exaggerated patient diagnoses to boost government reimbursements for its Medicare Advantage plans.
The Medicare Advantage segment, part of UnitedHealth’s broader Medicare and retirement group, is a critical revenue driver. The division brought in $139 billion in revenue last year.
The investigation adds to a growing list of challenges for the company. Earlier this year, CEO Andrew Witty unexpectedly stepped down, and former longtime CEO Stephen Hemsley returned to lead the firm. UnitedHealth shares have fallen nearly 49% in 2025 amid a series of setbacks.
Jared Holz, health care equity strategist at Mizuho, said Thursday that UnitedHealth has lost more than $300 billion in market value over the past month. He added that continued volatility could jeopardize the company’s position on the Dow Jones Industrial Average if performance does not stabilize.
The company also faced turbulence in 2024, including a major cyberattack, rising medical costs, and public fallout after the death of UnitedHealthcare CEO Brian Thompson.
