MW UnitedHealth's troubles pile up, as stock sinks again after report of DOJ probe

By Tomi Kilgore

Insurer says it hasn't been notified of any government criminal probe, as the Wall Street Journal reports, but stock still falls toward a 5-year low

It keeps getting worse for UnitedHealth Group Inc. investors, as a report of a criminal investigation into its Medicare practices sent the stock diving again in early Thursday trading.

The Justice Department is looking into potential Medicare fraud by the health insurer, according to a report in the Wall Street Journal, which cited people familiar with the matter.

Although UnitedHealth said it has "not been notified by the Department of Justice of the supposed criminal investigation," and called the WSJ report "deeply irresponsible," the stock $(UNH)$ sank 5.7% to lead the S&P 500 index's SPX premarket decliners.

The selloff put the stock on track to open around the lowest prices seen since June 2020. It was also headed for an eighth straight loss, which would be the longest such streak since the eight-day stretch that ended March 6, 2024.

Problems with UnitedHealth's Medicare Advantage business, including higher-than-expected patient utilization of services, led to a slashed full-year outlook and triggered a free fall in the stock in mid-April.

As the selloff continued, the stock took an even deeper dive on Tuesday after the company's MA issues worsened and the outlook was withdrawn. That follows an abrupt, albeit not unexpected, change in leadership.

Read: UnitedHealth sees a longtime bull throw in the towel after stock's plunge.

The WSJ's latest report of a DOJ probe comes a few months after the WSJ reported that UnitedHealth was facing a DOJ civil investigation in its Medicare billing practices, which UnitedHealth also said at the time that it wasn't aware.

About a year ago, the WSJ reported that the DOJ initiated an antitrust investigation, on which the company didn't comment.

Besides the DOJ, UnitedHealth is also dealing with government pressure on drug prices, including President Donald Trump vowing to "knock out" drug middlemen, which includes the company's Optum Rx business, and the president's recent call to cut prescription drug prices by 30% to 80%.

There was also the murder of the leader of the UnitedHealthcare business, Brian Thompson, which led to increased public scrutiny of UnitedHealth's insurance coverage practices.

UnitedHealth's stock has tumbled 39.1% in 2025 through Wednesday's close, and will likely become the S&P 500's worst performer this year on Thursday. In comparison, the Health Care Select Sector SPDR ETF XLV has lost 6.4% this year and the S&P 500 has edged up 0.2%.

-Tomi Kilgore

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May 15, 2025 08:14 ET (12:14 GMT)

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