DOJ Investigates UnitedHealth Group for Potential Medicare Fraud in Medicare Advantage

UnitedHealth Group is under investigation by the U.S. Department of Justice for potential criminal Medicare fraud, specifically targeting its Medicare Advantage business.

The DOJ's healthcare-fraud unit has been examining the case since at least last summer, focusing on issues such as kickbacks that lead to improper Medicare or Medicaid payments.

This probe follows notable instability at UnitedHealth, marked by an 18% drop in shares after CEO Andrew Witty's departure and the suspension of the company's 2025 financial outlook, with shares down nearly 40% year-to-date. The investigation underscores regulatory risks in Medicare Advantage operations, a critical segment for major health insurers, highlighting compliance and legal challenges in managing government healthcare programs.