The Department of Justice questioned former UnitedHealth doctors as it investigates claims that the health insurance giant pushed staffers to make diagnoses that triggered higher Medicare payments, according to a report Wednesday.The investigation, which dates back to at least last summer, concerns alleged efforts to encourage staffers to record certain diagnoses that trigger higher payments under Medicare Advantage, the program for seniors and the disabled, the Wall Street Journal reported.Investigators fo ...

UnitedHealth Group (UNH 2.27%) might want to change its stock ticker from "UNH" to "UGH." The latter better captures the feelings of the healthcare giant's shareholders in recent months.A string of problems has caused UnitedHealth Group's share price to plunge roughly 50% from the peak set in the fourth quarter of 2024. Some analysts have downgraded the stock, with HSBC recommending that investors reduce their holdings and slashing its price target. I have a different opinion, though. I think it's time to b ...

Core Viewpoint - UnitedHealth Group has faced significant challenges leading to a more than 50% decline in its share price from last year's peak, raising questions about its future performance and potential as a buying opportunity [2][4]. Company Challenges - The company experienced a cyberattack in February 2024, costing over $2 billion, and faced disappointing earnings outlooks, including lower-than-expected first-quarter earnings in April 2025 [4][5]. - The abrupt departure of CEO Andrew Witty and the reported criminal investigation by the U.S. Department of Justice into potential Medicare fraud have compounded the company's difficulties [6][10]. Temporary Issues - Some challenges, such as the impact of the cyberattack and higher medical costs, may be temporary as insurers can adjust premiums to manage costs, suggesting a potential rebound in profits [9]. - UnitedHealth Group anticipates returning to growth in 2026, indicating a long-term positive outlook despite current setbacks [10]. Leadership Changes - The transition in leadership from Andrew Witty to Stephen Hemsley, a former CEO, is viewed positively as Hemsley is expected to provide stable leadership during this turbulent period [11]. Market Position and Valuation - The stock is currently trading at its lowest price-to-earnings multiple in over a decade, suggesting that the market may have already priced in the company's challenges [13]. - Despite the ongoing issues, there is a belief that UnitedHealth Group could represent a "brilliant bad news buy" for patient investors willing to wait for recovery [12][13].

Core Viewpoint - UnitedHealth is facing significant challenges, including financial losses, criminal fraud allegations, and the murder of a top executive, while simultaneously approving a substantial pay package for its new CEO, Stephen Hemsley, which includes $60 million in stock [1][3][12]. Financial Performance - UnitedHealth reported its first earnings miss since 2008, leading to a market capitalization decline of over $250 billion since its peak in November [1][3]. - The company's stock price fell approximately 40% this year, with a notable drop of 22% on April 17, resulting in a loss of about $119 billion in market value [10][11]. Executive Changes - Stephen Hemsley returned as CEO last month after Andrew Witty stepped down, having served for four years [1][3][5]. - Hemsley's compensation package is reported to be aligned with median CEO pay in comparable companies, including a $1 million annual salary [2][3]. Legal and Ethical Issues - UnitedHealth is under investigation by the Department of Justice for potential Medicare fraud, and shareholders have filed a lawsuit alleging the company concealed the impact of the murder of Brian Thompson on its business [7][8][10]. - The company is conducting a review of its risk assessment and management practices, which will be overseen by independent experts [12]. Management and Strategy - Hemsley has expressed a commitment to restoring investor trust and improving company performance [12]. - The previous CEO, Andrew Witty, implemented changes that initially boosted profits but also increased the company's exposure to risks, particularly following changes in Medicare payment rules [17][18].

UnitedHealth shares fell more than 4% on Wednesday after the UK’s Guardian newspaper reported that the company made secret payments to nursing homes to reduce hospital transfers, adding to the woes of the healthcare conglomerate.The alleged action, part of a series of cost-cutting tactics, has saved the company millions, but at times risked residents’ health, the Guardian reported, citing an investigation.The allegations add to the litany of negatives that have hurt UnitedHealth in the last several months, ...

Few stocks have been as resilient as UnitedHealth Group (UNH 8.14%). The company operates the largest health insurance business in the U.S. It runs the second biggest pharmacy benefits manager (PBM). And UnitedHealth Group has a fast-growing healthcare technology and services unit with Optum. However, UnitedHealthGroup just hit a five-year low. Shares of the healthcare giant have plunged more than 50% below the peak set in late 2024. Here are five things investors need to know. 1. Pulling financial guidance ...

Core Viewpoint - UnitedHealth Group is facing significant challenges, including a sharp decline in share price due to a criminal investigation for possible Medicare fraud and a securities class action lawsuit, alongside the abrupt resignation of its CEO and withdrawal of financial guidance for 2025 [1][3][4]. Group 1: Criminal Investigation - The Justice Department is investigating UnitedHealth Group for potential criminal Medicare fraud, focusing on the company's Medicare Advantage business practices [3]. - The investigation has reportedly been active since at least the summer of 2024, raising concerns about the company's operational integrity [3]. Group 2: CEO Resignation and Financial Guidance - CEO Andrew Witty stepped down and was replaced by Stephen Hemsley, the current chairman and former CEO of UnitedHealth [3]. - The company retracted its previously issued financial guidance for 2025, which had been revised just a month prior, indicating instability in its financial outlook [1][3]. Group 3: Securities Class Action Lawsuit - A securities class action lawsuit has been filed against UnitedHealth in the Southern District of New York, alleging that the company misled investors regarding its earnings projections [4][5]. - The lawsuit claims that UnitedHealth's initial earnings per share (EPS) guidance of $28.15 to $28.65 was significantly revised down to $24.65 to $25.15, resulting in a market value decline of approximately $170 billion and a 22% drop in share price on the day of the announcement [5]. Group 4: Allegations of Corporate Strategy - The lawsuit alleges a corporate strategy aimed at denying health coverage to inflate profits, which has drawn increased scrutiny from regulators and public discontent [6]. - The complaint suggests that this strategy contributed to the murder of Brian Thompson, the CEO of UnitedHealthcare, highlighting the intense public reaction to the company's practices [6]. Group 5: Investor Impact - The lawsuit seeks to represent investors who purchased UnitedHealth stock between December 3, 2024, and May 13, 2025, alleging violations of federal securities laws [9]. - Following the abrupt guidance revision, analysts suggested that increased scrutiny may have led to higher care utilization, impacting the company's financial performance [8].

UnitedHealth Group Inc. UNH stock is trading lower on Thursday in reaction to a media report on a possible investigation for criminal Medicare fraud.The Wall Street Journal reported, citing people familiar with the matter, that the healthcare-fraud unit of the Justice Department’s criminal division is overseeing the investigation, which has been active since at least last summer. UnitedHealth’s latest annual securities filing says the company “has been involved or is currently involved in various government ...

UnitedHealth Group’s stock plunged Thursday morning after a report that the embattled insurance giant was being probed for Medicare fraud.The Department of Justice has been conducting the criminal investigation into whether the company — which pushed out CEO Andrew Witty on Monday — manipulated Medicare Advantage billing practices to improperly increase federal payments by inflating patient risk scores, the Wall Street Journal reported on WednesdayThe existence of the probe, which began last year but had no ...

Shares of UnitedHealth Group plunged more than 18% on Thursday following a report that the Justice Department is conducting a criminal investigation into the health-care giant over possible Medicare fraud.The DOJ is focusing on the company's Medicare Advantage business practices, but the exact nature of the potential criminal allegations is unclear, the Wall Street Journal reported late Wednesday, citing people familiar with the matter. In a statement, UnitedHealth Group said the Justice Department has not ...