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UnitedHealth Faces DOJ Criminal Probe Into Medicare Advantage Practices

The investigation, active since 2023, adds to financial losses, leadership upheaval, and mounting legal challenges for the health insurance giant.

The corporate logo of the UnitedHealth Group appears on the side of one of their office buildings in Santa Ana, California, U.S., April 13, 2020. REUTERS/Mike Blake/File Photo
Patients and doctors denounce UnitedHealth in a protest on the steps of Wall Street as the company's record profits were announced on January 16, 2025, in New York City.
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Overview

  • The U.S. Department of Justice is investigating UnitedHealth Group for potential Medicare fraud in its Medicare Advantage program, overseen by the DOJ’s healthcare fraud unit.
  • UnitedHealth's stock dropped 6–8% in after-hours trading on May 14, extending a nearly 50% decline over the past month.
  • The company claims it has not been notified of the investigation and maintains confidence in the integrity of its Medicare Advantage practices.
  • This development follows the abrupt resignation of CEO Andrew Witty, with former CEO Stephen Hemsley returning to lead the company through ongoing crises.
  • UnitedHealth is also contending with other legal challenges, including civil fraud and antitrust probes, as well as shareholder lawsuits tied to the fallout from the 2024 murder of a top executive.