UnitedHealth Group (NYSE: UNH) is facing its toughest week in years as a series of troubling developments sent its shares tumbling to a four-year low. The stock dropped nearly 17% in intraday trading on Wednesday, following an 18% plunge the day before, after news broke of a criminal investigation into the company’s Medicare Advantage business. This comes right after CEO Andrew Witty’s abrupt departure and the company’s withdrawal of its 2025 financial outlook, leaving investors with little clarity on what’s next.
The trouble began with the sudden exit of CEO Andrew Witty, a move that surprised both Wall Street and industry watchers. Leadership transitions are always closely watched, but the lack of detail around Witty’s departure added to the uncertainty. UnitedHealth then withdrew its 2025 forecast, removing a key benchmark that investors use to gauge future performance.
The situation escalated when reports surfaced that the U.S. Department of Justice is conducting a criminal investigation into UnitedHealth for possible Medicare fraud. The probe, which has reportedly been underway since at least last summer, is focused on the company’s Medicare Advantage operations, according to people familiar with the matter. While UnitedHealth says it has not been notified by the DOJ, the news was enough to send shockwaves through the market.
Investors wasted no time reacting to the cascade of bad news. UnitedHealth shares fell nearly 17% during Wednesday’s session, following Tuesday’s 18% drop. The stock is now at its lowest point since 2021, erasing billions in market value and marking one of the steepest two-day declines in the company’s history.
This sharp selloff reflects more than just a short-term reaction. Investors are reassessing the risks of holding UnitedHealth stock, factoring in the uncertainty around the company’s leadership, the lack of forward guidance, and the potential fallout from the criminal probe.
UnitedHealth is a giant in the U.S. healthcare industry, with business lines spanning insurance, pharmacy benefits, and healthcare services. Its performance often signals broader trends in the sector, which is why the current turmoil is being watched closely by competitors, regulators, and policymakers.
The criminal probe, regardless of its eventual outcome, introduces a level of regulatory risk that is hard to ignore. Such investigations can drag on for months or even years, weighing on the company’s share price and making it more difficult to attract new investors or retain existing ones.
UnitedHealth now faces the challenge of restoring investor confidence. The company will need to provide clear communication about the leadership transition, offer updates on the status of the criminal investigation, and lay out a credible plan for the future. Until then, the stock is likely to remain volatile as investors digest new information and reassess their positions.
The coming weeks will be critical for UnitedHealth’s board and interim leadership. Their ability to navigate this period of uncertainty will not only determine the company’s near-term trajectory but could also have ripple effects across the healthcare sector as a whole.
UnitedHealth’s recent troubles are a stark reminder of how quickly sentiment can shift when confidence in leadership and transparency is shaken.
