UnitedHealth Group Stock Plunges 4.91% Amid DOJ Probe

On May 15, 2025, UnitedHealth Group's stock dropped 4.91% in pre-market trading.

UnitedHealth Group is currently under intense scrutiny from the U.S. Department of Justice, which is conducting a criminal investigation into potential Medicare fraud. The company has denied any wrongdoing, but the investigation has added to the pressure on the healthcare giant, which has already faced significant challenges this year. The company's CEO, Andrew Witty, abruptly resigned, and the company suspended its 2025 financial forecast due to rising medical costs. The investigation is focused on the company's Medicare Advantage business, which has been under scrutiny for some time.

The investigation comes at a time when UnitedHealth Group is already facing significant challenges. The company's stock has fallen by about 40% this year, and the CEO's resignation has added to the uncertainty surrounding the company's future. The investigation is also part of a broader review of the Medicare Advantage program, which is facing increased scrutiny from regulators and lawmakers. The program covers nearly half of the 65 million beneficiaries of the Medicare program, and the government pays insurance companies a fixed rate per beneficiary. However, if a beneficiary has multiple health conditions, the payment amount may be higher.