Core Viewpoint - The United Health Group is currently under criminal investigation by the U.S. Department of Justice for potential healthcare insurance fraud, coinciding with a tumultuous period for the company marked by leadership changes and financial struggles [1][2]. Group 1: Leadership Changes - CEO Andrew Witty unexpectedly resigned on May 13, 2023, citing "personal reasons," leading to Stephen Hemsley, the chairman, taking over the CEO role after an 8-year hiatus [3]. - Witty, who previously led GlaxoSmithKline, had a compensation of approximately $26.3 million in 2024, while Hemsley will receive a base salary of $1 million and a one-time stock award of $60 million [3]. Group 2: Financial Performance and Market Reaction - Following the announcement of the DOJ investigation, United Health's stock plummeted nearly 18% on May 13, with an additional drop of over 8% the following day, resulting in a market value loss exceeding $280 billion [5][7]. - The company withdrew its 2025 financial guidance, with analysts predicting a 10%-20% reduction in expected earnings per share, and a potential 21%-29% decrease compared to initial long-term targets [4]. Group 3: Insurance Claims and Public Perception - United Health has faced criticism for high claim denial rates, with reports indicating that the company rejected nearly one-third of claims, double the industry average [11]. - A Senate report highlighted a significant increase in claim denials for Medicare Advantage Plan holders, with denial rates rising from 10.9% in 2020 to 22.7% in 2022 [11][10]. - The rising healthcare costs in the U.S. have led to public dissatisfaction, with a survey indicating that about two-thirds of Americans believe insurance companies should bear significant responsibility for high medical expenses [9].

Core Viewpoint - The U.S. Department of Justice is conducting a criminal investigation into UnitedHealth Group, potentially related to healthcare insurance fraud [1] Group 1: Investigation Details - The investigation was announced on May 14, coinciding with UnitedHealth Group's efforts to recover from a recent stock market decline [1] - Both the U.S. Department of Justice and UnitedHealth Group have not issued statements regarding the investigation [1] Group 2: Company Leadership Changes - The investigation follows a period of poor financial performance for UnitedHealth Group, which has seen the sudden resignation of CEO Andrew Witty [1] - Stephen Hemsley, the chairman of the board, has taken over as the new CEO [1] Group 3: Recent Incidents - The investigation comes shortly after the tragic shooting of Thompson, the CEO of UnitedHealth Insurance, in New York [1]