Tom Murphy, Associated Press Health Writer
The UnitedHealth Group stock skated on Thursday after the healthcare giant said it was under a Justice Department investigation.
The company said it has followed both criminal and civil requests from federal agents and is working with them.
“(UnitedHealth) has a long record of responsible conduct and effective compliance,” the company said in its Securities and Exchange Commission application.
Earlier this year, the Wall Street Journal said federal officials had launched a civil fraud investigation into how a diagnosis would be diagnosed that would lead to additional payments for Medicare’s dominance (MA) plans. These are personally implemented versions of the government’s Medicare coverage program, primarily for those over the age of 65.
The company’s UnitedHealthcare business is the country’s largest provider of Medicare Advantage Plans, covering over 8 million people. Increased use of care and interest rate cuts have led businesses to be under pressure in recent quarters.
The journal said in February, citing an anonymous source, that the investigation focused on billing practices in recent months.
The paper then said earlier this month that it was investigating federal criminal healthcare and how the company collects diagnoses that use doctors and nurses to enhance payments.
UnitedHealth Group Inc. said it had contacted the Department of Justice “after considering media coverage regarding investigations into certain aspects of participation in the Medicare program.”
UnitedHealth operates one of the nation’s largest health insurance and pharmacy profit management businesses. We also run the growing Optum business that provides care and technology support.
UnitedHealth was the third largest company in the Fortune 500 last year, and increased revenues of over $400 billion last year. Last year, its stock price exceeded $630, reaching an all-time high.
However, the company’s stock has been largely devalued since United Healthcare CEO Brian Thompson was fatally shot dead in midtown Manhattan and fatally shot on his way to the company’s annual investor meeting. Luigi Mangione, a 26-year-old suspect, has been charged in connection with the shooting.
In April, shares plummeted after the company cut forecasts as healthcare use spiked. A month later, former CEO Andrew Witty resigned, and the company retracted its forecast.
The shares slipped to another 2% ($5.12) on Thursday morning. This represents a 54% drop from an all-time high.
UnitedHealth will report its second quarter results next Tuesday.
Original issue: July 24th, 2025 9:10am EDT
