UnitedHealth Faces DOJ Expansion of Criminal Probe Beyond Medicare Advantage Billing

UnitedHealth Group's stock (UNH) declined 1.4% after the Department of Justice expanded its criminal investigation into the company's business practices beyond Medicare Advantage billing. The probe now includes Optum Rx's prescription management and reimbursement practices. UNH is also facing a civil fraud investigation and a lawsuit over inflated insulin prices. Despite a strong buy consensus rating, the stock has declined 40% year-to-date.

Title: UnitedHealth Group's Stock Drops Amid Expanded DOJ Probe

UnitedHealth Group (NYSE: UNH) saw its stock decline by 1.4% in late Tuesday trade following news that the U.S. Justice Department's criminal investigation into the health insurance giant has expanded beyond previously known Medicare fraud inquiries. The probe now includes UnitedHealth's prescription management services at its pharmacy benefit manager Optum Rx, as well as how the company reimburses its own doctors [1].

The Justice Department's criminal division is examining these areas, which add to existing investigations into the company's Medicare Advantage billing practices that have been ongoing since at least last summer. UnitedHealth has not been accused of wrongdoing, but the expanded scope of the investigation increases the complexity for the nation's largest health insurer [1].

UnitedHealth is also facing a civil fraud investigation into its Medicare billing practices, separate from the criminal inquiry, as well as potential civil antitrust issues. Additionally, the U.S. Federal Trade Commission has filed a lawsuit against UnitedHealth and two rival pharmacy benefits managers, alleging they drove up insulin prices, which the companies have disputed as "baseless" [2].

Despite these challenges, UnitedHealth has maintained its stance of confidence in its practices. The company referred Bloomberg to a July regulatory filing where it acknowledged responding to both civil and criminal Justice Department probes and expressed "full confidence in its practices" [1].

The health care conglomerate has seen its stock decline by approximately 40% year-to-date, despite a strong buy consensus rating. The company's shares have been volatile due to multiple investigations and regulatory challenges. In April, UnitedHealth missed its earnings targets for the first time in more than a decade and slashed its forecast, leading to the abrupt resignation of its CEO, Andrew Witty, in May [2].

In response to these developments, the company has taken several steps to restore confidence. This includes appointing new leadership at the Optum Rx pharmacy unit and the Optum Health division, and establishing a new "public responsibility committee" to oversee regulatory and reputational risks [2].

References:
[1] https://www.investing.com/news/stock-market-news/unitedhealth-stock-ticks-lower-amid-expanded-justice-department-probe-4211486
[2] https://www.bloomberg.com/news/articles/2025-08-26/unitedhealth-ongoing-criminal-probe-is-broader-than-medicare