UnitedHealth Group, one of the largest health insurers in the US, is facing a crisis after its CEO stepped down suddenly and abruptly abandoned financial guidance due to rising medical costs. The move has led to a federal criminal investigation into possible Medicare fraud, which has sent the company’s stock price plummeting.
The Wall Street Journal revealed that the DOJ’s healthcare-fraud unit is overseeing an investigation into UnitedHealth’s handling of Medicare claims, but the company disputes the allegations, calling them “deeply irresponsible.” CEO Andrew Witty’s departure has sparked speculation about the true reasons behind his exit, with experts suggesting he may have been forced out.
Former CEO Stephen Hemsley, who led the company to success between 2006 and 2017, has been brought back as interim CEO. Analysts praise Hemsley’s leadership experience and ability to navigate turbulent times. However, UnitedHealth still faces intense scrutiny from multiple federal agencies, including the DOJ, IRS, Labor Department, and Securities and Exchange Commission.
The company’s stock price has lost half its value in a month, with some analysts warning it could take years for the company to recover. Morgan Stanley and UBS have downgraded UnitedHealth’s ratings, citing the company’s struggles with Medicare fraud allegations and financial performance.
Source: https://edition.cnn.com/2025/05/15/business/unitedhealth-stock-ceo-investigation