UnitedHealth stock craters, hitting 5-year low after new report reveals possible Medicare fraud probe

Thu, May 15, 2025, 7:01 AM 2 min read

UnitedHealthcare (UNH) banal fell arsenic overmuch arsenic 17% aboriginal Thursday, reaching its lowest levels successful 5 years and marking a much than 50% driblet implicit the past period arsenic antagonistic headlines for the security elephantine continue to adhd up.

Thursday's plunge follows a new study successful The Wall Street Journal released precocious Wednesday that said the institution is facing a transgression probe related to imaginable Medicare fraud.

In a statement connected Wednesday, UnitedHealth called the communicative "deeply irresponsible," referring to a "supposed" investigation. UNH added successful its connection that it stands by the integrity of its Medicare Advantage program.

On Tuesday, the institution announced its erstwhile CEO, Stephen Helmsley, would regenerate Andrew Witty successful a astonishment determination that sent shares of the institution down astir 20%. The institution besides pulled its 2025 forecast successful making the enforcement change.

Wall Street analysts said pursuing the enactment and forecast announcements, the institution is improbable to person the payment of the uncertainty from investors until immoderate semblance of stableness tin beryllium offered.

Thursday's crisp absorption to the latest antagonistic developments for the institution is different lawsuit successful point.

As Yahoo Finance's Anjalee Khemlani noted earlier this week, the company's challenges are many: increased costs, governmental unit implicit its size, and scrutiny by the Federal Trade Commission and Department of Justice are each weighing connected the business.

Congress has besides enactment the spotlight connected its marketplace powerfulness arsenic a ample pharmacy benefits manager (PBM). Furthermore, the institution has faced questions astir its usage of artificial quality successful claims processing and a large cybersecurity attack connected its Change Healthcare subsidiary.

The institution besides suffered important nationalist backlash pursuing the sidesplitting of erstwhile enforcement Brian Thompson successful December, and investors are suing the company for downplaying the interaction from that tragedy. Questions astir assertion denials and fury astir wide security manufacture practices were directed astatine UnitedHealth successful the aftermath of the killing.

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