New York, Jan 12, 2026, 17:54 EST — After-hours
- UnitedHealth shares fell following a Senate report that cast new doubts on Medicare Advantage billing practices
- In a separate SEC filing, management indicated it intends to reaffirm its adjusted profit outlook for 2025 during upcoming investor meetings
- Traders are eyeing Jan. 27 results and 2026 guidance for clues on margin pressure and regulatory risks
Shares of UnitedHealth Group dropped Monday following a U.S. Senate committee report accusing the insurer of using aggressive risk-adjustment coding to increase Medicare Advantage payments. The stock closed down nearly 2% at $337.15, then edged up about 1% to $340.51 in after-hours trading. The report intensifies scrutiny of UnitedHealth’s Medicare billing practices, coming after the company disclosed last year it was cooperating with U.S. Justice Department inquiries. (Reuters)
The timing is crucial since Medicare Advantage drives big profits for major insurers, and Washington is once again scrutinizing how these plans receive payments. The “risk adjustment” system, which boosts payouts for sicker members, relies heavily on diagnosis codes.
UnitedHealth revealed in an SEC filing that senior executives met with investors on Monday and intend to reaffirm their adjusted 2025 earnings-per-share forecast—a key profit metric—while cautioning that year-end results are still incomplete. Such filings often signal attempts to manage expectations ahead of official numbers. (SEC)
Senator Chuck Grassley, chair of the Senate Judiciary Committee, stated that the company recorded more diagnoses and codes than any other Medicare Advantage provider. This led to increased payments from the Centers for Medicare & Medicaid Services. His office reviewed over 50,000 pages of company documents, with Grassley accusing UnitedHealth of “appears to be gaming the system.” (Chuck Grassley)
A UnitedHealth spokesperson pushed back against the report’s take on its Medicare Advantage coding, saying the company’s programs meet all CMS standards. “We remain focused on continuing to deliver lower costs, better access and higher quality care,” the spokesperson added. (Healthcare Dive)
The Senate report stopped short of formal recommendations or accusing UnitedHealth of any misconduct, according to the Wall Street Journal. Still, it hit a stock already rattled by ongoing headlines tied to Medicare billing and reimbursement issues. (Wall Street Journal)
UnitedHealth boosted its 2025 forecast back in late October, projecting adjusted net earnings of at least $16.25 per share. CEO Stephen Hemsley emphasized the company’s focus on “strengthening performance” while gearing up for growth in 2026. (UnitedHealth Group)
Ahead of Tuesday’s session, traders will be looking for further moves from regulators or lawmakers, as well as any indication the company might provide more specifics beyond its broad denial.
The debate extends beyond UnitedHealth. Medicare Advantage risk adjustment underpins the entire sector, meaning changes in enforcement or payment policies could impact major managed-care players across the board.
But the downside is straightforward: if the Senate’s findings lead to harsher audits, payment clawbacks, or fresh rule changes, the impact could stretch beyond just a single-day drop. This risk adds to the existing legal and regulatory burdens investors have already baked into the group’s valuation.
UnitedHealth will release its full-year results and 2026 outlook on Jan. 27, ahead of the market open. The company will then host a conference call at 8:00 a.m. ET. (UnitedHealth Group)
