UnitedHealth (UNH), the nation’s largest private health insurer, is now under a Department of Justice (DOJ) investigation for its Medicare billing practices. This adds to a string of problems that the company has been facing since late 2024. Following the news, UNH stock was 2% lower on Thursday morning.
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UNH has faced rising medical costs, suspended its 2025 forecast, and seen a leadership shakeup, including the surprise exit of former CEO Andrew Witty. As a result, shares of UnitedHealth are down more than 42% year-to-date.
DOJ Intensifies Heat on UnitedHealth
In a recent SEC filing, UNH said it is cooperating with both formal criminal and civil inquiries from the DOJ into whether the company improperly inflated patient diagnoses to get higher payments from the government.
Another area of focus is UnitedHealth’s HouseCalls program, where nurses visit Medicare Advantage members at home. The company used tools like a “diagnosis cart” to suggest conditions that could lead to higher payments. Diagnoses such as peripheral artery disease and secondary hyperaldosteronism are among those under review.
In response, UNH has started a third-party review of its business practices and performance metrics, which it expects to conclude by the end of the third quarter. In the SEC filing, the company said it is cooperating with the DOJ and maintains “full confidence” in the integrity of its Medicare Advantage program.
What Is the Future of UNH Stock?
Turning to Wall Street, UNH stock has a Moderate Buy consensus rating based on 18 Buys, five Holds, and one Sell assigned in the last three months. At $356.36, the average UnitedHealth stock price target implies a 24.04% upside potential.
