DEVELOPING: Justice Department Launches Criminal Probe Against UnitedHealth Group, Report Says | JP
According to The Wall Street Journal, the Justice Department is investigating UnitedHealth Group for possible Medicare fraud.
“The healthcare-fraud unit of the Justice Department’s criminal division is overseeing the investigation, the people said, and it has been an active probe since at least last summer,” The Wall Street Journal stated.
Report: UnitedHealth is under criminal investigation by the Justice Department for possible Medicare fraud pic.twitter.com/PRQUXuqz4X
— The Calvin Coolidge Project (@TheCalvinCooli1) May 14, 2025
The Wall Street Journal reports:
While the exact nature of the potential criminal allegations against UnitedHealth is unclear, the people said the federal investigation is focusing on the company’s Medicare Advantage business practices.
UnitedHealth didn’t respond to written questions Wednesday. A DOJ spokesman declined to comment.
The probe adds to a list of government inquiries into the company, including investigations of potential antitrust violations and a civil investigation of its Medicare billing practices, including at its doctors offices.
UnitedHealth is seeking to recover from a meltdown of its stock over its financial performance and the sudden replacement this week of its chief executive officer, Andrew Witty, with its chairman and former CEO Stephen Hemsley. UnitedHealth’s stock has declined by almost 50% over the past month.
So this is why the CEO stepped down yesterday?
: The Justice Department is investigating UnitedHealth Group for possible criminal Medicare fraud, people familiar with the matter said.
The healthcare-fraud unit of the Justice Department’s criminal division is overseeing the… pic.twitter.com/jFyiBfZpS5
— Melissa Hallman (@dotconnectinga) May 14, 2025
: The Justice Department is investigating UnitedHealth Group for possible criminal Medicare fraud, people familiar with the matter said.UnitedHealth Group Under Justice Department Investigation Over Potential Medicare Fraud, Report Sayshttps://t.co/Xe6sVrTmwd pic.twitter.com/CPJ45O06Pg
— Forbes (@Forbes) May 15, 2025
Per NBC News:
UnitedHealth Group announced a new chief executive Tuesday, a sudden and surprising change following the fatal shooting in December of its UnitedHealthcare subsidiary’s leader.
Andrew Witty stepped down from leading UnitedHealth for unspecified “personal reasons,” the company said. Stephen J. Hemsley, who served as chief executive from 2006 to 2017, will return to the role and remain board chairman. Witty will serve as a senior adviser to Hemsley, the company said in a news release.
UnitedHealth has been the focus of sharp criticism over the health insurance industry’s practices and has seen its stock plummet in the past year. The Justice Department has investigated its business activities.
UnitedHealth’s shares fell more than 17% Tuesday. The stock, which is part of the 30-company Dow Jones Industrial Average, closed at $311.38 a share, well off its recent high of $630.73 in November.
The company also said that it has suspended its annual outlook for 2025, to include “more types of benefit offerings than seen in the first quarter” and because “the medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare remained higher than expected.”
This is a Guest Post from our friends over at 100 Percent Fed Up.
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