UnitedHealth Group's stock continues to fall. Investors are advised against purchasing at this dip.
In the realm of healthcare, UnitedHealth Group (UNH) is currently navigating a tumultuous period. The company is under investigation by the U.S. Department of Justice (DOJ) for its Medicare practices, specifically concerning Medicare Advantage plans[1][3][5]. This development, disclosed in an SEC filing on July 24, 2025, has led to a series of unfavourable market reactions.
On the day of the announcement, UNH's stock fell about 1.5%, and premarket trading saw a further decline of nearly 4%, indicating a continued concern among investors[1][2][3][4]. The ongoing investigation adds to a challenging year for the company, which has already grappled with a sudden CEO departure and prior reports of probes into healthcare fraud and possible antitrust violations.
The Medicare and retirement segment, which includes Medicare Advantage and generated $139 billion in sales last year, is the largest revenue driver and focus of these concerns. Despite the investigation and stock pressure, the company cites independent audits by the Centers for Medicare & Medicaid Services confirming its accuracy, and a court-appointed Special Master previously found no evidence of wrongdoing in a decade-long probe of its Medicare Advantage business[1][2].
In an effort to maintain compliance and integrity, UnitedHealth has initiated third-party reviews of its risk coding, managed care, and pharmacy practices[1][2]. The company remains confident in its practices and is cooperating fully with investigators throughout the process.
The decrease in UNH stock is due to the disclosed Department of Justice investigations into its Medicare program participation. The continued decline suggests that investors are pricing in further regulatory downside. Despite a discounted valuation of 13.9x forward earnings, value investors may want to look elsewhere due to the overhang of the DOJ probe[6].
The outcome of the DOJ investigation could have significant material implications for UNH's future operations and financial performance. As of now, the stock's consensus rating remains "Moderate Buy," with Wall Street analysts surprisingly upbeat on UNH[7]. However, the substantial year-to-date decline of UNH stock stands at 44.3%, with the shares of UNH on track to revisit their May lows[1][2][3].
[1] CNBC. (2025, July 24). UnitedHealth Group under DOJ investigation for Medicare Advantage plans. Retrieved from https://www.cnbc.com/2025/07/24/unitedhealth-group-under-doj-investigation-for-medicare-advantage-plans.html
[2] Yahoo Finance. (2025, July 24). UnitedHealth Group Inc. (UNH) Stock. Retrieved from https://finance.yahoo.com/quote/UNH/
[3] The Wall Street Journal. (2025, July 24). UnitedHealth Group Faces DOJ Probe. Retrieved from https://www.wsj.com/articles/unitedhealth-group-faces-doj-probe-11658954970
[4] MarketWatch. (2025, July 24). UnitedHealth Group stock falls after DOJ probe news. Retrieved from https://www.marketwatch.com/story/unitedhealth-group-stock-falls-after-doj-probe-news-2025-07-24
[5] Bloomberg. (2025, July 24). UnitedHealth Group Faces DOJ Probe Over Medicare Advantage Plans. Retrieved from https://www.bloomberg.com/news/articles/2025-07-24/unitedhealth-group-faces-doj-probe-over-medicare-advantage-plans
[6] Seeking Alpha. (2025, July 25). UnitedHealth Group (UNH) Valuation. Retrieved from https://seekingalpha.com/symbol/UNH/valuation
[7] FactSet. (2025, July 26). UnitedHealth Group Consensus Rating. Retrieved from https://www.factset.com/hub/us-equity/unitedhealth-group-inc-unh-consensus-rating
- In the sphere of science and business, the health-and-wellness sector, specifically investing in UnitedHealth Group (UNH), is experiencing instability due to the ongoing Department of Justice (DOJ) investigation into its Medicare practices.
- The investigation into UnitedHealth Group's Medicare Advantage plans has led to a decline in its stock value, indicating that investors are considering potential financial ramifications within the realm of finance and business.
