UnitedHealth Group Inc. said it has not received any official notification from the US Department of Justice regarding a reported investigation into its Medicare Advantage practices, following a Wall Street Journal report that cited unnamed sources familiar with the matter.
The company issued a statement criticizing the report, saying the outlet acknowledged the “exact nature of the potential criminal allegations is unclear.”
“We stand by the integrity of our Medicare Advantage program,” the company said.
The timing of the reported investigation follows closely on the heels of a recently filed DOJ lawsuit that alleges a large-scale kickback scheme involving health insurers and brokers aimed at boosting Medicare Advantage enrollments.
That case, separate from the report involving UnitedHealth, underscores growing federal scrutiny of practices within the Medicare Advantage segment.
The report also comes amid leadership changes at UnitedHealth. Earlier this week, the company announced the resignation of CEO Andrew Witty and the return of former CEO Stephen Hemsley (pictured above) to the top position. That same day, UnitedHealth withdrew its 2025 financial outlook, citing higher-than-expected care activity and related costs.
This leadership change follows the December slaying of UnitedHealthcare CEO Brian Thompson in New York City. The incident led to the cancellation of the company's Investor Day and contributed to ongoing instability within the organization.
Financially, UnitedHealth reported first-quarter 2025 revenues of $109.6 billion, an increase of $9.8 billion year-over-year.
However, the company revised its full-year earnings outlook downward, citing higher-than-expected medical costs, particularly within its Medicare Advantage segment. These costs were attributed to increased care activity among new enrollees.
Additionally, the company faces a whistleblower lawsuit alleging it submitted $2 billion in unsupported diagnoses. While a special master recommended dismissal, the DOJ opposes that conclusion, asserting there is sufficient cause to proceed.
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