Trump's Next Move: Could UnitedHealth Be the Target for a Government Investment?

The Trump administration is considering buying a stake in UnitedHealth Group, Inc. (UNH), following a similar investment in Intel Corp. (INTC). The White House is actively seeking opportunities to apply the "Intel model" to other sectors deemed essential to national security and US economic resilience. UNH is heavily reliant on government dollars, with 72% of its 2021 health plan revenue coming from taxpayers. Trump recently bought corporate bonds from UNH, indicating his awareness of the company's strategic position and ties to federal health care spending.

The U.S. Department of Justice (DoJ) has expanded its criminal investigation into UnitedHealth Group Incorporated (UNH), now encompassing the company's Medicare business practices, its pharmacy benefit manager Optum Rx, and its reimbursement policies for its own doctors. This broader probe, which was not previously disclosed, adds complexity to the ongoing inquiry [1][2][3].

The initial investigation, first disclosed in May, was focused on potential Medicare fraud within UnitedHealth's Medicare business practices. However, recent reports indicate that the scope has widened to include UnitedHealth's pharmacy benefit manager, OptumRx, and the ways the company reimburses its own doctors [1][2][3]. UnitedHealth has not been accused of wrongdoing by the DoJ and has expressed confidence in its practices while cooperating with the investigation [2].

The expanded probe comes at a tumultuous time for UnitedHealth, which has faced significant challenges, including a data breach at its tech unit, Change Healthcare, a civil Medicare fraud case, a lawsuit from the Federal Trade Commission (FTC) over potential antitrust issues and insulin pricing, and the resignation of its CEO, Andrew Witty [3]. Despite these challenges, UnitedHealth has maintained that government audits and recent court findings support its compliance record [3].

The broader probe underscores growing concerns about UnitedHealth's market power and the potential antitrust risks associated with its integrated model spanning insurance, pharmacy benefits, and medical care. Regulators are increasingly focused on these aspects of UnitedHealth's operations [3].

References:
[1] https://www.nasdaq.com/articles/not-just-medicare-unitedhealths-optum-rx-gets-its-own-doj-checkup
[2] https://www.ainvest.com/news/unitedhealth-faces-broader-justice-department-probe-medicare-fraud-2508/
[3] https://www.ainvest.com/news/unitedhealth-group-doj-investigation-medicare-practices-reimbursement-pharmacy-benefits-2508/