UnitedHealth Group (UNH), the largest health insurer in the U.S., has faced a whirlwind of challenges over the past year — from rising medical costs and a major cyberattack to regulatory pressure and even a tragic executive murder. After its most recent earnings report missed expectations, shares of UNH fell over 20% in a single day, sparking fear across the healthcare sector.
But is this a sign to run — or a rare opportunity to buy?
What Happened?
On May 13, 2025, UnitedHealth Group faced a significant upheaval. CEO Andrew Witty unexpectedly resigned, citing personal reasons. In response, the company reinstated Stephen Hemsley, who previously led UnitedHealth from 2006 to 2017, as CEO to navigate through this challenging period.
Simultaneously, UnitedHealth suspended its 2025 financial outlook, a move that surprised investors. This decision was attributed to unexpectedly high medical costs, particularly within its Medicare Advantage segment, where care activity among patients was double the anticipated rate.
The combination of leadership change and financial uncertainty led to a sharp decline in UnitedHealth’s stock, which plummeted nearly 18%, closing at $311.38—the lowest in almost five years.
The Bigger Picture
UnitedHealth is no stranger to challenges. Over the past year, the healthcare giant has dealt with a series of tough blows: a massive cyberattack, increased scrutiny from regulators, the shocking murder of its insurance unit CEO, and widespread backlash from patients, policymakers, and the media.
Despite these setbacks, UnitedHealth continued to meet or maintain most of its earnings forecasts. However, as of May 2025, the company withdrew its financial forecast for the year, citing a surge in medical costs and the continuing fallout from these crises.
Major Events Impacting UNH Stock
🚨 February 2024: Cyberattack
UNH’s tech unit, Change Healthcare, was hit by a BlackCat ransomware group in February 2024, affecting payment systems across hospitals and insurers.
- The breach was one of the largest in U.S. healthcare history, exposing data of up to 190 million people.
- The company said it would cost them $1.6 billion in 2024 alone.
📉 Medical Costs Surge
In January 2024, UnitedHealth warned of rising medical costs.
- Those costs continued to climb, and in April 2025, the company posted disappointing earnings and lowered its outlook.
- This was a major red flag for Wall Street, and the stock dropped over 20% on the news.
⚖️ Regulatory Scrutiny & Lawsuits
UNH is under investigation by the DOJ for Medicare billing practices.
- The DOJ alleges that Medicare would have paid the company $2.1 billion less if it had deleted unsupported billing codes.
- The FTC is suing the company’s pharmacy benefit arm for allegedly steering patients toward more expensive insulin.
- In May 2025, shareholders filed a lawsuit accusing UnitedHealth of concealing business risks after the murder of one of its top executives.
💔 December 2024: Tragedy Strikes
In a shocking event, Brian Thompson, the head of UnitedHealth’s insurance unit, was murdered in Manhattan. The attack was labeled as a targeted act, and the suspect is now facing murder and terrorism charges.
- The company faced public backlash afterward and provided $1.7 million in personal security for its executives in 2024.
Why the Stock Crash Might Be an Overreaction
Yes — UnitedHealth is facing many issues. But none of them suggest the company is broken.
- Despite the cyberattack, the company maintained its 2024 profit forecast.
- It still holds a dominant position in the U.S. healthcare system.
- It has a long history of stable earnings, cash flow, and innovation in both insurance and technology services.
Why This Is Not the Time to Panic
While the stock’s recent drop might feel unsettling, it’s crucial to recognize that much of the bad news is already priced into the stock at these levels. Market reactions are often driven by short-term emotions, but long-term investors know that volatility creates opportunity.
A Track Record of Recovery:
Under Stephen Hemsley’s leadership, UnitedHealth saw more than 300% growth in stock price from 2006 to 2017. His deep knowledge of the business will likely help the company navigate these rough waters.
A Strong Market Position:
Despite the turmoil, UnitedHealth remains a dominant player in the healthcare space. Its massive customer base and integrated services put it in a strong position to capitalize on the long-term growth of the healthcare industry.
Attractive Valuation:
With the stock trading at a significant discount after the selloff, this is an attractive opportunity for long-term investors. UnitedHealth is an essential part of the U.S. healthcare system, and the market has likely overreacted to the short-term news.
Final Thoughts
UnitedHealth is going through a tough period — no doubt. But panic selling is rarely the right answer when it comes to quality businesses.
As long-term investors, this is not the time to panic. The stock is now very cheap. It’s the time to consider buying.
Now may be the perfect time to add UnitedHealth to your portfolio, taking advantage of the market overreaction and positioning yourself for potential long-term gains.
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