Will UnitedHealth's Push for Access to Trump Calm Investor Jitters?

Group 1 - UnitedHealth Group Incorporated (UNH) is facing criminal and civil investigations into its Medicare Advantage business and has increased its lobbying efforts in Washington, nearly doubling its lobbying budget this year [1][2] - The company has held high-level meetings with Justice Department and White House officials to discuss policy and ongoing probes, and has changed its legal team to include attorneys with closer ties to President Trump [2][3] - UnitedHealth is seeking a meeting with President Trump as the administration advances its "most favored nation" policy aimed at reducing drug prices [3] Group 2 - UnitedHealth remains a key player in the industry, currently in a turnaround phase under CEO Stephen Hemsley, with investor confidence bolstered by Warren Buffett's Berkshire Hathaway purchasing over 5 million shares, amounting to approximately $1.57 billion [4] - Competitors Humana Inc. and The Cigna Group have also increased lobbying spending, with market concerns around Medicare Advantage remaining high, particularly for Humana [5] - Cigna is strategically scaling back its Medicare Advantage presence and focusing on health services and commercial insurance, which are expected to enhance profitability [6] Group 3 - UnitedHealth's year-to-date stock decline has been reduced to 30.3%, compared to the industry decline of 24.3% [7][8] - The company trades at a forward price-to-earnings ratio of 20.65, higher than the industry average of 16.36, with a Zacks Consensus Estimate for 2025 earnings at $16.21 per share, indicating a 41.4% drop year-over-year [10][12] - The stock currently holds a Zacks Rank 5 (Strong Sell) [13]