UnitedHealth faces federal investigation over Medicare billing practices
- The Department of Justice is investigating UnitedHealth Group for its Medicare billing practices.
- UnitedHealth is cooperating with federal requests and claims to have a strong compliance history.
- The investigation adds to the company's challenges, including recent leadership changes and declining stock performance.
In the United States, UnitedHealth Group announced on July 24, 2025, that it is under investigation by the Department of Justice concerning its Medicare billing practices. The investigation was initially indicated by a report from The Wall Street Journal earlier in the year, which revealed a civil fraud probe into how the company manages and records diagnoses that could result in additional payments for its Medicare Advantage plans. As the largest provider of Medicare Advantage plans in the nation, UnitedHealth covers over 8 million people, primarily seniors. The announcement has brought significant attention to the company, which has already faced considerable pressure from rising healthcare costs, leadership changes, and stock market performance. Following the tragic shooting of UnitedHealthcare CEO Brian Thompson in December 2024, the company has experienced a prolonged decline in its stock value. This recent investigation has only compounded the challenges at a time when the healthcare sector is under scrutiny for various practices and profit-making tactics. In its response to the investigation, UnitedHealth stated that it proactively reached out to the Department of Justice after becoming aware of media reports about the inquiry. The company asserts that it is complying with both criminal and civil requests and remains confident in its business practices. UnitedHealth has emphasized its history of responsible conduct and aims to maintain transparency with regulatory bodies. The implications of this investigation are significant for UnitedHealth, as increased scrutiny from federal authorities can lead to additional regulatory challenges, reputational damage, and potential financial repercussions. As this situation continues to unfold, the company is committed to cooperating with the DOJ to demonstrate the integrity of its operations amid these serious allegations.