UnitedHealth Group Plots Comeback Amid Plunging Stock and DOJ Probe

As of August 1, 2025, UnitedHealth Group (NYSE: UNH) is facing a series of setbacks that have sent its stock price plummeting. The healthcare giant recently revealed that its full-year 2025 earnings will be worse than expected, disappointing investors. Adding to the company's woes, the U.S. Department of Justice (DOJ) is now conducting an investigation into UnitedHealth's Medicare billing practices.

Despite these challenges, UnitedHealth Group is not giving up. The company has a clear plan to address its problems. One of the key steps is to raise premiums, especially for its Medicare Advantage plans, which have been hit hard by rising medical costs. While most of these premium hikes won't take effect until next year, UnitedHealth's commercial plans can be adjusted more quickly.

In addition to pricing adjustments, UnitedHealth is also taking other measures to improve its performance. The company's insurance business, UnitedHealthcare, is stepping up its audit, clinical policy, and payment integrity tools to protect customers and patients from unnecessary costs. UnitedHealthcare is also streamlining its provider networks, particularly for Medicare Advantage plans.

The company's Optum segment, which has not been performing as well as desired, is also implementing a plan to address its issues. Optum CEO Patrick Conway has announced that price increases are coming to reflect high patient acuity and risk, and the company will discontinue serving around 200,000 patients.

While UnitedHealth Group's current situation may seem bleak, the company's decisive actions and clear plan to address its problems suggest that a turnaround could be on the horizon. Investors who are willing to take a chance on this beaten-down stock may be rewarded if the company's efforts pay off.