NEW YORK, Jan 12, 2026, 13:48 EST — Regular session
- Shares of UnitedHealth dropped following a Senate report that took aim at its Medicare Advantage billing and coding practices
- The company also filed an 8-K, confirming that management plans to reaffirm its previous 2025 adjusted EPS outlook during upcoming investor meetings
- The next major event is the full-year results and 2026 guidance, set for Jan. 27
Shares of UnitedHealth Group Incorporated dropped Monday following a U.S. Senate report accusing the insurer of using aggressive tactics to boost Medicare Advantage payments. The stock dipped 1.5% to $338.89 in early afternoon trading. (Reuters)
The report arrives amid heightened scrutiny of managed-care stocks, with investors digesting the potential for stricter oversight and more payment changes in Medicare Advantage—a key revenue driver for the sector. UnitedHealth plans to reveal its 2026 outlook later this month, and any signals that audits or repayments could increase usually rattle investor confidence early on.
Medicare Advantage offers a private-sector option to traditional Medicare. These plans get a set monthly payment for each member, which increases if patients are diagnosed with more severe conditions—a process called risk adjustment. This coding practice remains a frequent battleground between regulators and insurers. (Kff)
On Monday, Senator Chuck Grassley unveiled a report compiled from over 50,000 pages of company documents. “Bloated federal spending to UnitedHealth Group is not only hurting the Medicare Advantage program, it’s harming the American taxpayer,” Grassley said. (Senate)
UnitedHealth pushed back against the report’s depiction of its operations. A spokesperson challenged the committee’s take on its Medicare Advantage coding and HouseCalls program, saying both follow CMS rules and have shown “demonstrated sustained adherence” in government audits. Becker’s Hospital Review pointed out the report didn’t accuse UnitedHealth of wrongdoing or suggest any actions. (Becker’s Hospital Review)
Pressure hit the group broadly. Humana dropped 1.2%, Cigna slipped 2.1%, and Elevance edged down 0.5% in afternoon trading.
Separately, UnitedHealth filed an 8-K on Monday, noting that senior management plans to meet with investors and reaffirm its adjusted 2025 EPS guidance. The company also warned that year-end closing is still underway and final numbers may shift. (SEC)
UnitedHealth bumped up its 2025 adjusted earnings guidance in October, targeting at least $16.25 per share. CEO Stephen Hemsley said then, “We remain focused on strengthening performance and positioning for durable and accelerating growth in 2026 and beyond.” (UnitedHealth Group)
The company highlighted Medicare Advantage’s value on Monday, citing two Milliman-commissioned studies. These studies found that Medicare Advantage cost the federal government 9% less than traditional Medicare in 2025 and lowered out-of-pocket expenses for some beneficiaries. The release also noted that the CMS V28 risk model phase-in caused a 4% drop in Medicare Advantage revenue compared to the previous model. (UnitedHealth Group)
Shareholders face the risk that Washington’s scrutiny could tighten reimbursement rules or lead to tougher payment audits. Though the Senate report stops short of formal recommendations, the headlines alone might hold the stock down—at least until management lays out its outlook on 2026 margins and the fundamentals of Medicare Advantage.
UnitedHealth is set to release its full-year 2025 earnings and offer 2026 guidance before the market opens on Jan. 27. The announcement will be followed by a morning call with analysts. (UnitedHealth Group)
