Following the announcement of the investigation, UnitedHealth's stock price declined by over 1% during morning trading.

On July 24, 2025, UnitedHealth Group announced that its Medicare business is under investigation by the Department of Justice (DOJ) for potential Medicare fraud.

The investigation stems from allegations that UnitedHealth incentivized nursing home staff to alter patient care statuses and targeted potential Medicare enrollees using health records.

Reports indicate that the DOJ has interviewed several doctors regarding claims practices that may have pressured them to submit diagnoses that could inflate Medicare Advantage payments.

In addition to the criminal investigation, a civil inquiry has been ongoing since February 2025, focusing on allegations that UnitedHealth inflated diagnoses to secure additional payments.

This investigation follows media reports highlighting concerns about UnitedHealth's billing practices and operational policies related to Medicare.

The Medicare and retirement segment is crucial for UnitedHealth, generating $139 billion in sales last year, making the outcome of this investigation particularly significant.

In 2025, UnitedHealth's shares have fallen over 42%, attributed to rising medical costs and leadership changes, including the departure of former CEO Andrew Witty.

UnitedHealth is cooperating with the DOJ's investigations and has initiated a third-party review of its Medicare practices, which is expected to conclude by the end of the third quarter.

In response to the investigation, UnitedHealth stated that the DOJ had previously declined to pursue the matter after finding inaccuracies in the claims against the company.

Despite the ongoing challenges, UnitedHealth claims that independent audits by the Centers for Medicare and Medicaid Services confirm its billing practices are among the most accurate in the industry.

The DOJ's criminal investigation into UnitedHealth began in May 2025, with the company publicly defending its Medicare Advantage program.