UnitedHealth Just Got Punched in the Face by the Feds

UnitedHealth (UNH) just confirmed what insiders have been whispering since last year: they’re officially under criminal and civil investigation by the Department of Justice for Medicare billing practices. Translation? The biggest private health insurer in America is now defending its biggest cash cow.

Here’s the play-by-play: The DOJ wants to know if UnitedHealth inflated patient diagnoses under the Medicare Advantage program to rake in billions in extra payments. Allegedly, conditions were added to patient files—often without the treating doctor’s confirmation—so the company could bill Uncle Sam more. Not a good look.

UnitedHealth says they’re clean. In fact, they beat the DOJ to the punch, reaching out first and launching their own internal audit with third-party reviewers. They’re trying to show they’re squeaky clean by the end of Q3. But let’s be real: when a company brings in outside investigators, it’s not because they’re bored.

This drama comes after a string of gut punches:
– CEO Brian Thompson was murdered in December
– Shares crashed 22% in April after a brutal earnings miss
– CEO Andrew Witty resigned unexpectedly in May
– The company pulled its 2025 forecast entirely
– And now this DOJ bombshell

In total? UNH stock is down 42% year-to-date and nearly 50% from its highs. This is the kind of chart that makes long-term holders question their life choices.

Now here’s the kicker: UnitedHealth’s Medicare & Retirement business did $139 billion in revenue last year. That’s their golden goose. If regulators crack down on how insurers bill Medicare, everyone in the industry takes a hit—but none harder than UnitedHealth.

The next big moment? Their earnings call on July 29. Expect analysts to grill the new leadership team on compliance, strategy, and how they plan to win back trust while the DOJ is breathing down their neck. 

Investor takeaway: When the DOJ gets involved, it rarely ends quickly. Watch for more volatility. And if you’re long UNH, hope that audit is cleaner than their Q1 report.