The Wall Street Journal had previously reported that Medicare paid UnitedHealth billions of dollars for questionable diagnoses.

UnitedHealth Group shares tumbled early Friday on a report that the U.S. Department of Justice has started an investigation into the health care giant’s Medicare billing practices.

In this post-shooting and DOGE-era, regulators may be emboldened to make more changes than they otherwise would have on insurers that are seen to be fleecing the system,” explained one analyst.

DOJ is looking into whether UnitedHealth’s practices related to patient diagnoses force higher payments from the government’s Medicare Advantage program.

Key Takeaways Shares of UnitedHealth Group sank Friday following a report that the U.S. Department of Justice is investigating the company's diagnosing practices.The Wall Street Journal reported that the DOJ is probing whether the company tends to over-diagnose conditions that can earn larger Medicare Advantage payouts.

UnitedHealth Group stock fell sharply Friday following a report that said the Justice Department had launched a civil fraud investigation into the company’s Medicare billing practices. The stock fell 12% to $444.