UnitedHealth Group is facing a criminal investigation over potential Medicare fraud, according to a report by the Wall Street Journal (WSJ), which cited sources familiar with the matter.
The U.S. Department of Justice has been conducting a probe into UnitedHealth’s Medicare Advantage operations since at least last summer, those sources said.
Following the news, UnitedHealth’s shares dropped more than 6% in after-hours trading on May 14. The stock has already lost nearly 50% of its value over the past month.
The precise nature of the potential criminal charges remains unclear, but the investigation is said to be focused specifically on the company’s practices within its Medicare Advantage unit.
UnitedHealth did not respond to inquiries from the Wall Street Journal, and a spokesperson for the Justice Department declined to comment.
The news comes on the heels of a major shakeup at the company, which recently ousted CEO Andrew Witty and suspended its earnings guidance — marking a second shock for investors, following an earlier cut to its annual outlook.
These developments have raised fresh concerns about UnitedHealth’s long-term strategy, particularly its reliance on Medicare Advantage to drive profits — a business segment that once fueled growth but has recently stumbled.
A Previous Shock: Executive Murder
The insurer also made national headlines in late 2024 when Brian Thompson, CEO of UnitedHealth’s insurance division, was fatally shot on December 4 outside a New York hotel where the company was holding an investor event.
The high-profile killing, followed by a five-day manhunt, captivated the country.
While public officials condemned the act, some members of the public expressed support for the alleged shooter, David Mangione, arguing he brought attention to exorbitant healthcare costs in the U.S. and the power insurance companies wield in denying coverage.
In the wake of the incident, UnitedHealth shareholders filed a lawsuit last week, alleging the company misled investors by hiding the adverse business impacts stemming from the executive’s murder.
