UnitedHealth Under Fire: Criminal Probe, CEO Exit, and Nursing Home Scandal Explode

If you’ve been seeing UnitedHealth Group pop up in the news lately, it’s not good news. Between a criminal investigation, accusations of cutting corners on elderly care, and a major leadership shakeup, the healthcare giant is facing one of the most intense public and financial storms in its history.

Let’s walk through what’s happening in plain, everyday language.

So, Is UnitedHealth Actually Being Investigated?

Yes—and it’s not just a routine check-in. The U.S. Department of Justice is reportedly running a criminal investigation into UnitedHealth over its Medicare Advantage business. Specifically, the feds are looking into whether the company manipulated patient records to make people look sicker than they actually were. That would let them collect more money from Medicare, which is funded by taxpayers.

UnitedHealth says they haven’t been formally told they’re under investigation, but according to multiple reports, this probe has been going on quietly since mid-2024.

In short, the government thinks UnitedHealth might have been gaming the system for years—and if that turns out to be true, it could be a huge deal.

And Then There’s the Nursing Home Allegation

If that wasn’t enough, another wave of trouble hit the company this May.

An investigation by The Guardian claims that UnitedHealth paid bonuses to nursing homes as an incentive not to send elderly residents to hospitals. The idea? Keep people in the nursing home, avoid expensive hospital stays, and cut costs.

But here’s the issue: some of those patients may have needed real medical care—and not getting it may have led to serious harm, or worse.

Whistleblowers, court records, and internal company documents all suggest this wasn’t just a one-off issue—it might’ve been a widespread cost-cutting strategy. UnitedHealth, for its part, denies wrongdoing and says the DOJ already looked into the matter and didn’t move forward.

Still, even if no criminal charges come out of this, the optics are bad. Really bad.

Stock Crash and CEO Resignation

This kind of news doesn’t just stay in the headlines—it hits the market fast.

UnitedHealth’s stock has fallen more than 50% in 2025. As of now, it’s sitting at around $302.98 per share, which is the lowest it’s been in five years. Some analysts, including those at HSBC, say even at that price, the stock could still fall further.

And as if things weren’t rocky enough, CEO Andrew Witty stepped down. The company brought back its former CEO, Stephen Hemsley, to try and steady the ship.

They’ve also pulled their financial guidance for 2025, meaning they’re basically telling investors: “We’re not sure how this is going to play out yet.”

Why This Matters

Even if you’re not a shareholder or directly insured by UnitedHealth, this situation matters. Medicare Advantage covers millions of older Americans. If a company is manipulating the system or pressuring nursing homes to hold back care, that impacts real lives—your parents, grandparents, or even you in the future.

It also raises bigger questions about how far healthcare companies are willing to go to protect profits. When care decisions are driven more by spreadsheets than by people’s needs, everyone loses.

UnitedHealth is in hot water. Between the fraud investigation and growing public scrutiny over patient care, they’ve got a long road ahead to rebuild trust—and possibly to defend themselves in court.

This story isn’t over, and the fallout could reshape not only the company, but how Medicare Advantage is regulated going forward.

If you’ve got UnitedHealth insurance, or are on Medicare Advantage, it’s worth keeping an eye on how this develops.