UnitedHealth Stock Drags on the Dow After DOJ Probe News
UnitedHealth Group stock is sinking Friday on reports the Justice Department is investigating the health insurer. Here's what to know.


UnitedHealth Group (UNH) stock fell out of the gate Friday, dragging the blue chip Dow Jones Industrial Average down with it. Weighing on the shares is a report in The Wall Street Journal that indicated the Justice Department is investigating the insurance company's Medicare billing practices.
The investigation is probing UnitedHealth's handling of diagnosis records that increase payments to its Medicare Advantage plans, including those from physician groups it owns, The Wall Street Journal article stated, citing people familiar with the matter.
The news comes after several Wall Street Journal investigations, including a December report that revealed UnitedHealth-employed doctors significantly increased lucrative diagnoses for patients after they joined the company's Medicare Advantage plans.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Doctors told The Wall Street Journal that they were trained by UnitedHealth to document revenue-generating conditions, some of which they found "obscure or irrelevant."
Furthermore, a July report from The Wall Street Journal found that UnitedHealth added diagnoses for untreated conditions, leading to $8.7 billion in extra federal payments in 2021. This included some diagnoses from in-home visits by nurses working for its HouseCalls business unit.
The Justice Department has not confirmed the investigation. In a statement, UnitedHealth said, "The Wall Street Journal continues to report misinformation on the Medicare Advantage (MA) program," and that "any suggestion that our practices are fraudulent is outrageous and false."
Is UnitedHealth stock a buy, sell or hold?
UnitedHealth has lagged the broader market over the past 12 months, down 2% on a total return basis (price change plus dividends) vs the S&P 500's 25% gain. Still, Wall Street is overwhelmingly bullish on Dow Jones stock.
According to S&P Global Market Intelligence, the average analyst target price for UNH stock is $637.24, representing implied upside of roughly 40% to current levels. Additionally, the consensus recommendation is a Strong Buy.
Financial services firm Morgan Stanley has an Overweight rating (equivalent to a Buy) and a $610 price target on the blue chip stock.
"United's model is enhanced via vertical integration with its OptumRx pharmacy benefit manager (PBM) platform, which is one of the three largest PBMs in the country," wrote Morgan Stanley analyst Erin Wright in a January 17 note. "With a large lead in breadth of services offerings and considerable exposure to government businesses, UnitedHealth is well positioned for any potential changes in the U.S. healthcare system."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Use the 'Newton Rule' to Grow Your 401(k) Retirement Savings
Harnessing Sir Isaac Newton's rule of retirement can boost your 401(k) savings while you chill.
-
Are You a Small Business Owner Buckling Under Economic Pressure? Here's How You Can Cope
Significant emotional and financial challenges, including tariff worries, are piling up on small business leaders. Here's how leaders can develop more healthy coping strategies and systems of support.
-
Are You a Small Business Owner Buckling Under Economic Pressure? Here's How You Can Cope
Significant emotional and financial challenges, including tariff worries, are piling up on small business leaders. Here's how leaders can develop more healthy coping strategies and systems of support.
-
To Raise Prices or Not to Raise Prices: Tariff Tips for Small Businesses
Small businesses are making critical decisions. Should they pass on higher costs due to tariffs, or would that only cost them more in lost customers?
-
Five Retirement Planning Traps You Can't Afford to Fall Into, From a Wealth Adviser
To help ensure you reach your savings goals and enjoy financial security in your golden years, be aware of these common pitfalls. The key is to be proactive, informed and flexible.
-
Your 401(k) Can Now Include Alternative Assets, But Should It? A Financial Adviser Weighs In
Many employer-sponsored plans offer limited investment options, which can stunt growth. But participants considering alternatives might need some sound advice to get the most from their accounts.
-
Will Taxes Shred Your 401(k) or IRA During Your Retirement? It's Very Likely
Conventional wisdom dictates that you save in a 401(k) now and pay taxes later, but turning that rule on its head could leave you far better off. A financial planner explains why.
-
More Retirees Are Renting: Should You? A Financial Adviser Weighs In
In some ways, renting is cheaper, more flexible and easier, but unless you understand the implications for your taxes and health costs, it might not be for you.
-
Dow Dives 878 Points on Trump's China Warning: Stock Market Today
The main indexes erased early gains after President Trump said China is becoming "hostile" and threatened to cancel a meeting with President Xi.
-
I'm a Real Estate Investing Pro: This 1031 Exchange Strategy Can Triple Your Cash Flow
Savvy investors can use 1031 exchanges to unlock value by moving capital across markets in a play called geographic arbitrage. These tax implications can make or break the strategy.