UnitedHealth Group is currently facing a civil fraud investigation by the Department of Justice (DOJ) concerning its Medicare Advantage billing practices. The investigation, which began in February 2025, is scrutinizing how UnitedHealth records diagnoses to generate additional payments for its Medicare Advantage plans. Reuters reported that the DOJ's actions have prompted further scrutiny, adding pressure on the company.
In addition to the DOJ's probe, Senator Chuck Grassley has launched a separate inquiry, seeking comprehensive details about UnitedHealth's compliance programs and other related documentation. The announcement of these investigations has negatively impacted UnitedHealth's stock, which dropped by more than 6% following the news, as noted by AP News.
This isn't the first time UnitedHealth's billing practices have come under legal challenge. Earlier in March 2025, a court-appointed special master ruled against U.S. authorities in a similar fraud case, stating insufficient evidence on claims against the company regarding Medicare overpayments. Throughout these investigations, UnitedHealth has maintained its stance of denying any wrongdoing, emphasizing its adherence to compliance and integrity in handling Medicare Advantage plans.