UnitedHealth Group confirmed that its Medicare Advantage program is under investigation by the U.S. Department of Justice, with the company pledging cooperation amid ongoing scrutiny.
The health insurer, reeling from recent leadership turmoil and a high-profile executive murder, disclosed that it is responding to formal criminal and civil requests from the agency.
“The Company has now begun complying with formal criminal and civil requests from the Department,” UnitedHealth said in a statement. “The Company has full confidence in its practices and is committed to working cooperatively with the Department throughout this process.”
The disclosure followed media reports, including a Wall Street Journal article suggesting a criminal fraud probe into the company’s Medicare Advantage billing was underway, though specifics remain unclear. UnitedHealth, a major contractor providing Medicare coverage to seniors, had previously called such reports “deeply irresponsible” and stood “by the integrity of our Medicare Advantage program,” denying any notification of an investigation at that time, CNN reported.
The company is also conducting third-party reviews of its patient health status codes, managed care practices, and pharmacy services. This follows earlier reports by the Wall Street Journal and STAT News questioning its billing practices, as well as a February civil investigation into alleged inflated diagnoses for extra Medicare payments.
In March, a court-appointed Special Master recommended dismissing a years-long DOJ lawsuit claiming $2 billion in illegal withholdings, citing insufficient evidence.
The investigation marks another challenge for UnitedHealth, America’s largest private insurer, which has faced a turbulent year.
CEO Brian Thompson was fatally shot in New York City in December 2024, sparking widespread social media backlash over care denials. Former CEO Andrew Witty resigned abruptly in May 2025 after the company suspended its 2025 financial outlook due to rising Medicare costs, with ex-CEO Stephen Hemsley returning to lead.
The company’s stock has dropped over 42% this year, losing more than $277 billion in value, and fell an additional 5% on July 24, 2025. UnitedHealth’s Medicare and retirement segment, including Medicare Advantage, generated $139 billion in sales last year.
The probe intensifies pressure on the insurer, already grappling with a 2024 cyberattack and ongoing public criticism.