Another rough day in trading for United Health Group (UNH) Friday, as reports the Department of Justice (DOJ) is investigating its Medicare Advantage insurance business has sent the stock down more than 11% in pre-market trading.

The civil fraud investigation, first reported by the Wall Street Journal, involves questionable recording of diagnoses that would boost payments from the Centers for Medicare and Medicaid Services (CMS), which pays private insurers lump sums to provide alternate Medicare coverage.

It's the sixth time this year the stock traded down, and the second time this week. Earlier this week, the company reportedly was offering buyouts to employees of the health insurance business, UnitedHealthcare, and considering layoffs if it didn't reach the target for buyouts.

That's just the latest headwinds the company has had to battle in the past year. Last year, United Health was the target of a widespread cybersecurity attack that impacted more than 190 million — a number the company only revealed at the start of this year.

In addition, the DOJ has been scrutinizing the company for a potential breakup, and the Federal Trade Commission (FTC) could block its latest acquisition. 

The company also suffered a shocking tragedy in December, with the shooting death of its top insurance executive, Brian Thompson — sending shockwaves through the industry amid public backlash.

The $460 billion market cap company has been on the decline amid all these pressures, marking a significant shift in its growth prospects from prior years — when it was a favorite to become the first trillion dollar healthcare company.

Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee on social media platforms X, LinkedIn, and Bluesky @AnjKhem.

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