UnitedHealth Group Stock Plummets Amid DOJ Investigation Report

UnitedHealth Group (UNH) suffered another steep decline in trading, dropping more than 8% in early trading following reports that the Department of Justice (DOJ) is investigating its Medicare Advantage insurance business, according to a Yahoo Finance report by Anjalee Khemlani.

With these mounting challenges, UnitedHealth’s $460 billion market cap has been steadily declining. I Photo: Chad Davis Wikimedia Commons

The civil fraud investigation, first reported by the Wall Street Journal, focuses on how UnitedHealth records diagnoses to increase payments from the Centers for Medicare and Medicaid Services (CMS).

CMS pays private insurers lump sums to provide alternative Medicare coverage, and DOJ investigators are examining whether UnitedHealth manipulated the system for higher reimbursements.

This marks the sixth time this year that UnitedHealth’s stock has fallen and the second time this week.

Earlier this week, the company offered buyouts to employees in its health insurance division, UnitedHealthcare, and warned that layoffs could follow if buyout targets weren’t met.

UnitedHealth has faced multiple setbacks over the past year:

• In 2024, the company was hit by a massive cybersecurity attack affecting more than 190 million people, a number it only disclosed in early 2025.

• The DOJ is also weighing a possible breakup of UnitedHealth, and the Federal Trade Commission (FTC) is considering blocking its latest acquisition.

• In December 2024, the company was rocked by the tragic shooting of its top insurance executive, Brian Thompson, an event that shocked the industry and fueled public backlash.

With these mounting challenges, UnitedHealth’s $460 billion market cap has been steadily declining, marking a sharp contrast to its previous rapid growth. Once considered a leading contender to become the first trillion-dollar healthcare company, its outlook has significantly shifted amid ongoing investigations and legal troubles.