UnitedHealth Under Federal Investigation for Alleged Medicare Fraud

UnitedHealth Group, one of the largest health insurance providers in the United States, is currently undergoing a criminal investigation by the U.S. Justice Department amid allegations of Medicare fraud. According to reports from the Wall Street Journal, authorities are examining the company's Medicare Advantage program, which involves private firms managing the delivery of government-sponsored health benefits for seniors. The investigation comes at a challenging time for the insurance giant, shortly after its CEO announced his unexpected resignation and following the December death of Brian Thompson, head of the company’s insurance division, which has stirred public concern over the US healthcare system's complexities and profitability.

UnitedHealth has publicly denied any knowledge of the investigation, criticizing the report as irresponsible. Historically, the firm has been scrutinized for practices related to patient diagnoses and billing, notably in February when it was reported that UnitedHealth was under investigation for allegedly encouraging doctors to make diagnoses that would maximize Medicare payments. The latest developments led to a significant decline in the company's stock value, which had already fallen 12.3% following the CEO's departure and the suspension of its 2025 financial outlook due to unforeseen costs.

This investigation highlights ongoing concerns about the integrity of Medicare billing practices and the broader challenges facing the US healthcare insurance industry. It underscores the importance of oversight and transparency in managing taxpayer-funded programs that serve millions of Americans. The situation remains dynamic, with further updates expected as authorities continue their inquiries.

Source: https://medicalxpress.com/news/2025-05-health-giant-unitedhealth-fraud-probe.html