UnitedHealth Faces DOJ Probe Over Medicare Fraud Allegations, Shares Plunge

UnitedHealth Group (NYSE: UNH) is under investigation by the U.S. Department of Justice (DOJ) for potential criminal fraud related to its Medicare Advantage business, according to a report by the Wall Street Journal. The healthcare giant’s stock dropped 6.5% in after-hours trading, hitting a near five-year low amid the growing legal scrutiny.

The DOJ’s healthcare-fraud unit has reportedly been probing UnitedHealth since at least mid-2023. While the exact details of the criminal allegations remain unclear, the investigation focuses on whether the company engaged in fraudulent billing or reporting practices in its Medicare operations. This latest development adds to a series of legal challenges facing the insurer.

In addition to the criminal probe, UnitedHealth is also facing a civil investigation tied to Medicare billing practices and separate concerns over potential antitrust violations. The company’s business model, which heavily relies on federal healthcare programs, may come under further pressure as lawmakers consider cost-cutting measures, including efforts to reduce Medicare drug prices.

The mounting scrutiny has triggered leadership changes within the company. Earlier this week, UnitedHealth abruptly replaced CEO Andrew Witty with former CEO and current Chairman Stephen Hemsley. The leadership shakeup comes as the company’s stock has seen a sharp decline in 2025, reflecting investor concerns over its legal exposure and the potential for regulatory reforms.

The DOJ investigation could have significant implications not just for UnitedHealth, but for the broader Medicare Advantage sector, which has faced increased oversight in recent years. As more details emerge, analysts and investors will be closely watching for signs of financial or operational fallout.