UnitedHealth Faces DOJ Scrutiny: Medicare Billing Investigations Raise Concerns for America’s Largest Insurer

UnitedHealth Faces DOJ Scrutiny: Medicare Billing Investigations Raise Concerns for America's Largest Insurer

UnitedHealth Group Faces Department of Justice Investigation into Medicare Billing

UnitedHealth Group announced on Thursday that it is the subject of both criminal and civil investigations by the U.S. Department of Justice concerning its Medicare billing practices. The company, which operates the nation’s largest private health insurer, disclosed this information in a recent securities filing.

The insurer said it has started cooperating with the Department of Justice’s formal requests related to the probes. UnitedHealth also initiated an independent review of its business policies and performance metrics by a third party. The company expects to complete this review by the end of the third quarter of 2025. UnitedHealth stated it has confidence in its Medicare billing practices and is committed to working with the Department of Justice throughout the investigation process. Despite this, the company’s shares fell about 2% following the announcement.

The investigation revolves around whether UnitedHealth inflated diagnoses to receive higher payments from the Medicare Advantage program. The program pays private insurers based on the health conditions reported for their enrollees. Reports earlier in 2025 indicated that federal investigators interviewed physicians to determine if there was pressure to submit claims for certain diagnoses to boost Medicare payments.

This is not the first time UnitedHealth’s Medicare Advantage business faced federal scrutiny. A civil investigation by the DOJ earlier in the year examined possible overbilling practices. Still, UnitedHealth pointed to audits by the Centers for Medicare and Medicaid Services that confirmed the company’s accuracy in billing. The company also cited a recommendation from a court-appointed special master who found the DOJ lacked sufficient evidence in a related legal dispute concerning Medicare Advantage payments.

Medicare and retirement services, including Medicare Advantage, represent UnitedHealth’s largest source of revenue, accounting for $139 billion in sales last year.

UnitedHealth has experienced a challenging period recently. Its stock has declined sharply this year amid rising medical costs, the suspension of its 2025 financial forecast, the unexpected departure of CEO Andrew Witty in May, and public scrutiny following these federal investigations. The insurer also endured a major cyberattack in 2024 and dealt with the fallout after the murder of its former CEO, Brian Thompson.

The company plans to address questions about the ongoing DOJ investigation during its upcoming second-quarter earnings call scheduled for July 29. Observers note that UnitedHealth’s decision to confirm the investigation and cooperate with authorities aligns with its transition to new leadership and efforts to resolve outstanding legal issues.

UnitedHealth Group remains under close watch as the investigations progress, and the company continues to assert the integrity of its Medicare billing processes.

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