Quick overview

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The Department of Justice (DOJ) is conducting a criminal investigation into UnitedHealth Group for potential Medicare fraud. Following the report, which comes after a string of issues at the insurer, the company’s stock fell 8% in after-hours trading.

 

Andrew Witty, the CEO of UnitedHealth Group, abruptly resigned on Tuesday. The company also halted its 2025 financial projection because of the escalating cost of healthcare. Shares fell almost 18% to a four-year low after the announcement.

According to the Journal, which cited people with knowledge of the situation, the investigation by the DOJ’s criminal division’s healthcare-fraud unit has been underway since at least last summer, even though the specifics of the criminal accusations are still unknown.

The Wall Street Journal disclosed a civil fraud investigation into UnitedHealth’s Medicare practices. The company stated that it was unaware of any new examination.

Senator Chuck Grassley initiated an inquiry into UnitedHealth’s Medicare billing practices, demanding extensive documentation regarding their compliance program and related materials. A spokesperson for the Department of Justice declined to comment to the Journal on the alleged criminal investigation.

UnitedHealth responded, asserting that it had not received notification from the Department of Justice regarding the reported criminal investigation.

The company expressed concern that the Wall Street Journal’s reporting was irresponsible, even while acknowledging that the potential criminal allegations were unclear. They reaffirmed their confidence in the integrity of their Medicare Advantage program.

The current investigation is part of a broader scrutiny of the Medicare Advantage program. Earlier this month, the Department of Justice (DOJ) filed a lawsuit against three of the largest health insurers in the U.S., accusing them of paying hundreds of millions of dollars in kickbacks to brokers in exchange for directing patients to their Medicare Advantage plans.