UnitedHealth Group stock, symbol UNH, sank 17.8% to $311.38 today.  This was its lowest closing price since October 30, 2020.  The stock’s $ 67.37 price decline wiped about 414 points off the Dow Jones Industrial Average, driving the DJIA down to a 270 point loss, while the S&P 500 index (without UNH) ended up 0.7%.

The U.S. Department of Justice is investigating UnitedHealth Group for possible criminal Medicare fraud related to its Medicare Advantage business:

https://www.zerohedge.com/markets/unitedhealth-shares-plunge-continues-reported-doj-probe-medicare-fraud

UnitedHealth Shares Plunge Continues On Reported DoJ Probe For Medicare Fraud
By Tyler Durden - May 14, 2025 - 07:15 PM

And the hits just keep on coming...

UNH shares are plunging after hours (down 6% and back below $300 for the first time since September 2020) following a report from The Wall Street Journal that, according to people familiar with the matter, the DOJ is investigating UnitedHealth Group for possible criminal Medicare fraud related to its Medicare Advantage business.

While the exact nature of the potential criminal allegations against UnitedHealth is unclear, the people said the federal investigation is focusing on the company’s Medicare Advantage business practices.

The Justice Department’s criminal healthcare fraud unit focuses on crimes such as kickbacks that trigger higher Medicare and Medicare payments.

UnitedHealth’s latest annual securities filing says the company “has been involved or is currently involved in various governmental investigations, audits and reviews,” and flags involved agencies including the Justice Department.

It doesn’t specifically mention the criminal, civil and antitrust probes the Journal has reported.

The probe adds to a list of government inquiries into the company, including investigations of potential antitrust violations and a civil investigation of its Medicare billing practices, including at its doctors offices.

All of this comes as the Trump administration and Congress look to cut federal health spending, a key source of UnitedHealth’s success.

UnitedHealth Group stock (UNH) has now lost well over half of its value over the last 30 days.  It was trading at $ 277 this afternoon, after DJIA trading ended.  This was a small improvement from its $ 248.88 low during the cash session.

https://www.zerohedge.com/markets/unitedhealth-shares-drop-after-report-reveals-secret-bonus-payments-nursing-homes-cutting

UnitedHealth Shares Drop After Report Alleges Secret Bonus Payments To Nursing Homes For Cutting Hospital Transfers
By Tyler Durden - May 21, 2025

UnitedHealth Group shares dropped as much as 7.5% in premarket trading Wednesday in New York, following a Guardian investigation that revealed the health insurer shelled out "Premium Dividend" and "Shared Savings" bonuses to nursing homes that reduced hospital transfers for sick residents.

The Guardian's investigation is based on thousands of confidential corporate and patient records obtained through sources, public records requests, and court filings, along with interviews with nearly two dozen current and former UnitedHealth and nursing home employees, as well as two whistleblower declarations submitted to Congress.

The report offers a new snapshot into UnitedHealth's daily operations at nearly 2,000 nursing homes across the country, where it manages Medicare Advantage coverage for more than 55,000 long-term residents.

Here are some of the key findings from the report:

UnitedHealth stationed in-house medical teams at nearly 2,000 nursing homes, incentivizing them to lower hospitalizations through financial rewards like "Premium Dividend" and "Shared Savings" payments tied to hospitalization rates.

Internal records show UnitedHealth monitored nursing homes using "admits per thousand (APK)" metrics and set "budgets" for hospitalizations. Facilities with high APKs were denied bonuses.

In multiple documented cases, patients were denied urgent hospital care, leading to serious harm, including permanent brain damage. Whistleblowers say these incidents were hidden or minimized.

Nurse practitioners were pressured to push "Do Not Resuscitate" (DNR) orders, even when patients had previously expressed the desire for life-saving treatments.

UnitedHealth also incentivized increased enrollment in its Institutional Special Needs Plans by offering large payments to nursing homes, which in some cases leaked confidential patient data to help sales teams directly solicit families—often bypassing consent rules.

The Guardian noted:

In several cases identified by the Guardian, nursing home residents who needed immediate hospital care under the program failed to receive it, after interventions from UnitedHealth staffers. At least one lived with permanent brain damage following his delayed transfer, according to a confidential nursing home incident log, recordings and photo evidence.

A current UnitedHealth nurse practitioner, who recently submitted a congressional complaint regarding the nursing home program, stated:

"No one is truly investigating when a patient suffers harm. Absolutely no one.

"These incidents are hidden, downplayed and minimized. The sense is: 'Well, they're medically frail, and no one lives for ever.'"

A former national UnitedHealth executive said:

"APK drove everything. You gain profitability by denying care, and when profitability suffers for the shareholders, that's when people get crazy and do things that are not appropriate."

Two current and three former UnitedHealth nurse practitioners said that UnitedHealth managers pressured them to persuade Medicare Advantage members to change their "code status" to DNR, even when patients had clearly expressed a desire to receive all available life-saving treatments.

UnitedHealth responded to the Guardian's report, rejecting claims that its employees have prevented hospital transfers.

The Guardian's report comes at a time of crisis for UnitedHealth. Last week, shares logged the worst weekly crash since 1998 after a Wall Street Journal report said the Department of Justice has been conducting a criminal investigation into the company's Medicare practices. In addition, UnitedHealth suspended its 2025 outlook, and its CEO abruptly exited.

In the premarket session, shares fell as much as 7.5% after the Guardian's report.

Only one Wall Street analyst—CFRA's Paige Meyer—had a "Sell" rating on UnitedHealth earlier this year, out of roughly 30 tracked by Bloomberg. Wall Street, it seems, was overly bullish on the insurer—now shares have imploded.

Still sinking:

https://www.ibtimes.co.uk/unitedhealth-group-stock-plunges-after-disappointing-q2-results-ongoing-civil-investigation-1739658

UnitedHealth Group Stock Plunges After Disappointing Q2 Results, Ongoing Civil Investigation
By Teddy Cambosa - 29 July 2025

UnitedHealth Group's stock has plunged following the release of its Q2 results, which many industry analysts have described as 'disappointing' amid continued challenges in its operations. Moreover, this also follows a current civil and criminal investigation related to probes into its Medicare practices.

Stock's Lowest Level

UnitedHealth Group shares plunged to roughly $268 (£200.91), their lowest level since 2020, after Q2 earnings fell short, even as revenue reached $111.6 billion (£83.66 billion). Adjusted EPS came in at $4.08 (£3.06) versus forecasts of $4.48+ (£3.36+), prompting the company to reduce its full‑year outlook to at least $16 per share.

Despite legal pressures and cost overruns, analysts maintain a 'Moderate Buy' consensus, with average price targets between $392 and $435 (£293.86 and £326.10)—suggesting potential upside of 40–50% over the coming year.

More on UHC's Q2 Results

It is worth noting that the company's net income decreased 19% to $3.41 billion (£2.56 billion). Moreover, the medical-loss ratio rose to 89.4%, reflecting the increasing costs of healthcare, particularly in Medicare Advantage, which outpaced premium increases.

The company also reinstated full-year 2025 guidance, forecasting $445.5 billion to $448.0 billion (£333.97 billion to £335.84 billion) in revenue and adjusted EPS of at least $16.00 (£11.99), a sharp cut from earlier projections of up to $30/share (£22.49). It should be recalled that the company announced in May that it would suspend its 2025 outlook.

'Embarking on a Rigorous Path'

Following the release of UnitedHealth Group's Q2 results, its CEO Stephen Hemsley stated that the company has 'embarked on a rigorous path back to being a high-performing company fully serving the health needs of individuals and society'.

'As we strengthen operating disciplines, positioning us for growth in 2026 and beyond, the people at UnitedHealth Group will continue to support the millions of patients, physicians and customers who rely on us, guided by a culture of service and longstanding values,' he stated.

During the company's latest earnings call, Tim Knoll, Head of UnitedHealthcare, emphasised the seriousness of current challenges, remarking, 'We know these are serious challenges. We are humbled by them.'

Moreover, Patrick Conway, CEO of Optum, highlighted the potential of value-based care, saying, 'Value-based care has the potential to transform health care.'

More on Its Current Investigations

The company had recently confirmed that it is under investigation by both the US Department of Justice and the US Department of Justice concerning its Medicare Advantage business practices.

The probes focus on allegations that the company encouraged or incentivised staff and healthcare providers to record diagnoses that inflated government payments.

'[The company] has proactively launched its initiative to conduct third-party reviews of policies, practices, and associated processes and performance metrics for risk assessment coding, managed care practices, and pharmacy services, the company said in a press statement.

Other reports have suggested that former employees have been questioned, and the investigations involve the DOJ's healthcare‑fraud unit, the FBI, and the HHS Office of Inspector General.

In response to this, UnitedHealth states that it has proactively reached out to the DOJ, is fully cooperating, and maintains confidence in its compliance, while launching third-party reviews of coding and managed care operations.

A Turbulent Future Ahead

While Q2 2025 earnings fell short and prompted a significant downgrade in full-year guidance, the company maintains strong revenue growth and remains optimistic about its long-term prospects. However, the DOJ's criminal and civil investigations into Medicare Advantage practices raise serious concerns about compliance and corporate governance.

As investors weigh the risks, UnitedHealth's future will hinge on its ability to restore trust, manage medical costs, and navigate legal challenges—factors that will determine whether its stock can rebound meaningfully in 2026 and beyond.

@10x25mm so .... shark in the water, or a friendly bailout??

https://www.cnbc.com/2025/08/14/warren-buffetts-berkshire-hathaway-unh.html

Warren Buffett’s Berkshire Hathaway reveals new stake in beleaguered insurer UnitedHealth

Thu, Aug 14 2025

 

Key Points

• Warren Buffett’s Berkshire Hathaway bought more than 5 million shares in UnitedHealth last quarter for a stake worth about $1.6 billion.
• Berkshire also added stakes in D.R. Horton, Lennar and Nucor, while trimming its Apple and Bank of America positions.
• UnitedHealth shares jumped in extended trading after Buffett’s latest quarterly filing was revealed.

 

 

 

 

Warren Buffett’s Berkshire Hathaway reveals new stake in beleaguered insurer UnitedHealth

Warren Buffett’s Berkshire Hathaway revealed a new stake in troubled insurer UnitedHealth last quarter, according to a regulatory filing, a surprising buy because of the company’s current reputation, but perhaps not considering his history of bargain investing.

The Omaha, Nebraska-based conglomerate purchased more than 5 million shares in the health-care firm for a stake worth about $1.6 billion at the end of June. The stake puts it as the 18th-biggest position in the Berkshire portfolio behind Amazon and Constellation Brands, according to VerityData.

Berkshire’s equity portfolio is worth about $300 billion, so it is possible that Buffett’s two investing lieutenants, Todd Combs and Ted Weschler, were more responsible for this purchase rather than the “Oracle of Omaha” himself. Buffett said one of his investment managers was behind the Amazon investment in 2019.

The insurer’s stock shot up 6% in extended trading following Berkshire’s disclosure.

UnitedHealth Group Inc

RT Quote | Last NYSE Arca, VOL From CTA | USD

After Hours: Last | 7:59 PM EDT

308.15-0.34 (-0.11%)

308.49+4.48 (+1.47%)

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UnitedHealth year to date

Shares of UnitedHealth were down nearly 50% for 2025 through Thursday’s close before Buffett’s filing. The largest private health insurer has become the face of public blowback in this country against the rising costs of health care. UnitedHealth is currently facing a Justice Department investigation into its Medicare billing practices.

In May, the company pulled its annual earnings outlook and CEO Andrew Witty stepped down. Last month, UnitedHealth gave a new 2025 outlook that was well short of Wall Street estimates, hitting the stock further.

Buffett, who’s turning 95 this month, has been critical of the health-care system in the U.S., calling it a “tapeworm” on the economy due to its high costs. In 2018, he, along with Jeff Bezos and Jamie Dimon, launched a joint venture to improve health care for their employees and potentially for all Americans, but it was eventually shut down.

Other notable moves

UnitedHealth isn’t the only stock Berkshire picked up recently. In fact, the conglomerate also took small stakes in steel manufacturer Nucor, outdoor advertising company Lamar Advertising and security firm Allegion. Berkshire also got back into homebuilders Lennar and DR Horton.

Shares of Nucor jumped nearly 8% in after-hours trading, while Lennar and DR Horton popped about 3% each.

Buffett also pared his positions in Bank of America and Apple. The Apple stake was cut by about 7%. Berkshire’s largest positions as of the end of the second quarter were Apple, American Express, Bank of America, Coca-Cola and Chevron.

The legendary investor is stepping down as Berkshire CEO at the end of the year, handing over the reins to Greg Abel. Buffett will stay on as chairman of the board. It’s still unclear who will be in charge of Berkshire’s gigantic equity portfolio, though Buffett has alluded that Abel will be making all capital allocation decisions at the conglomerate.

UnitedHealth attracted other buyers last quarter, according to filings, including Michael Burry and Appaloosa Management’s David Tepper. Shares of the insurer are trading at a price-earnings ratio of just under 12, near their lowest in more than a decade.

There was speculation regarding a mystery stock Buffett was buying as Berkshire had asked for permission to keep certain holdings secret last quarter. It turns out the secret stock was a combination of multiple positions and likely the stakes added in DR Horton, Nucor and Lennar “A” shares.

Yun Li covers the U.S. markets for CNBC and reports on the biggest investors on Wall Street, including hedge funds. She focuses on Warren Buffett and his conglomerate Berkshire Hathaway. Her work includes a weekly “Invest Like Buffett” column about the legendary investor’s philosophy and lessons. She is based at CNBC Global Headquarters.

Warren Buffett may be the Oracle of Omaha, but his health care stock picks have been generally poor. 😏 His worst health care stock picks have been Teva Pharmaceutical Industries Ltd., the Sanofi ADR, and DaVita Inc.  Mr. Buffett is at the end of his game and the Berkshire Hathaway investment in UnitedHealth Group may have been ordered by Greg Abel, his designated successor.

Time will tell if UnitedHealth Group recovers from all its problems.