Investigation by Justice Department on UnitedHealth pressures stock prices
The Department of Justice (DOJ) has launched both criminal and civil investigations into UnitedHealth Group's Medicare business practices, focusing on its Medicare Advantage billing and diagnosis coding that affect federal payments[1][2][3]. UnitedHealth has publicly disclosed these investigations, stating that it is fully cooperating with the DOJ's formal requests for information and compliance[1][2][3].
The investigations center on allegations of systematically exaggerating the health status of patients ("upcoding") to maximize profits, a practice that has been criticized in the healthcare industry[4]. UnitedHealth, however, has denied the allegations and emphasized its history of responsible behavior and effective compliance[2][3].
The company has highlighted independent audits by the Centers for Medicare & Medicaid Services (CMS) that found its Medicare Advantage practices among the most accurate in the industry[2][3]. A previous court-appointed monitor concluded a decade-long investigation of their Medicare Advantage unit found no evidence of wrongdoing[1][3].
Despite this, the ongoing DOJ probes mark a significant escalation in scrutiny over UnitedHealth’s Medicare operations. The investigations are part of a broader regulatory spotlight on UnitedHealth, including antitrust scrutiny related to a major acquisition, and they come amid a challenging year for the company with leadership changes and falling stock prices[1][2].
Investors remain on the sidelines due to the ongoing investigations. UnitedHealth's stock dropped by around three percent in pre-market trading in New York on Thursday, and came under significant pressure in the days leading up to the official confirmation of the investigations[1][2].
UnitedHealth (WKN: 869561) is cooperating fully with the DOJ investigations, and no further details on investigation outcomes or timeline were available as of the latest July 2025 reports. The investigation carries the risk of significant penalties for UnitedHealth, with some competitors having to pay hefty settlement sums in similar cases[4].
References:
- The Wall Street Journal
- Bloomberg
- Reuters
- Kaiser Health News
- The investigations by the Department of Justice (DOJ) into UnitedHealth Group's Medicare business practices suggest a growing interest in medical-conditions and health-and-wellness aspects in the finance and business sectors.
- The allegations of systematic patient diagnosis coding manipulation, known as 'upcoding', in UnitedHealth's Medicare Advantage program highlight the importance of science and integrity in the healthcare industry.
- The ongoing DOJ probes and antitrust scrutiny pose potential financial challenges for UnitedHealth, emphasizing the intersection of Medicare, business, and financial concerns.
