UnitedHealth Faces Criminal and Civil Probes into Medicare Billing

As of August 1st, 2025, UnitedHealth Group (UNH), the healthcare giant, is embroiled in a "perfect storm" of challenges. The company has officially confirmed that it is facing both criminal and civil investigations by the Department of Justice (DOJ) into its Medicare billing practices.

The DOJ investigations, which were first revealed in a securities filing last week, are targeting UnitedHealth's lucrative Medicare Advantage business, which generated $139 billion in revenue last year. Prosecutors are examining whether the company inflated diagnoses to trigger higher Medicare payments and whether doctors felt pressured to submit claims for certain conditions that would boost reimbursements.

This confirmation marks a significant shift from UnitedHealth's previous denials of any DOJ investigation. The announcement has sent the company's stock tumbling by more than 3% last week, adding another layer of uncertainty to what has already been a tumultuous year for the nation's largest private insurer.

UnitedHealth's woes this year include the abrupt departure of CEO Andrew Witty in May, suspended 2025 earnings guidance due to skyrocketing medical costs, and the ongoing fallout from the December murder of CEO Brian Thompson. As a result, the company's stock has plummeted over 45% in 2025.

Despite the mounting challenges, some analysts maintain a measured outlook. Mizuho's Ann Hynes believes investor concerns are overblown, noting "the stock is trading like the government's going to kick them out of Medicare and Medicaid, and the likelihood of that is zero." Hynes expects the situation to be resolved with a financial settlement and a corporate integrity agreement, a common outcome for such investigations.