UnitedHealth Group Inc. (NYSE:UNH) is reportedly ramping up its lobbying efforts in Washington, amid ongoing government investigations and changes in federal payments.
Medicare Probes Push UnitedHealth To Boost Lobbying Spend
UnitedHealth is facing government probes and federal payment alterations that have impacted its financials. To address these challenges, the company is employing a strategy that includes enlisting the help of Trump’s associates and directly engaging with top administration officials, as per the Wall Street Journal.
Check out the current price of UNH stock here.
The company's CEO, Stephen Hemsley, reportedly met with White House Chief of Staff Susie Wiles to discuss Medicare and additional matters. Additionally, Hemsley met for dinner with Chris Klomp, the official in charge of Medicare, to discuss billing policies and supplemental benefits provided by private Medicare plans.
UnitedHealth’s lobbying expenditure of $7.7 million in the first half of 2025 has exceeded its previous records. The company has increased its spending on lobbyists and lawyers with close ties to the Trump administration, including top presidential fundraiser Brian Ballard and former Justice Department official Jesse Panuccio.
The company has also attempted to arrange a meeting with President Trump, but has not yet succeeded. The primary goal of these lobbying efforts is to address the government investigations into its Medicare business.
Investors Concerned Amid Intensifying Scrutiny
UnitedHealth’s intensified lobbying efforts come at a time when the company is under scrutiny. Earlier this month, the company reaffirmed its 2025 earnings target and confirmed consistent Medicare Advantage ratings.
Investors are particularly concerned about how the Trump administration will handle billing practices in the Medicare business, a key driver of UnitedHealth's profit and growth expectations. Mehmet Oz, head of the agency overseeing Medicare, has pledged to intensify scrutiny of certain tactics used by insurers, which include UnitedHealth, in addition to previously announced changes.
CNBC commentator Jim Cramer expressed his reservations about buying UnitedHealth stock under investigation. On a year-to-date basis, UnitedHealth stock slumped 31.54%.
Despite the uncertainty, David Tepper’s Appaloosa Management increased its stake in UnitedHealth by a staggering 1,300% last quarter.
According to Benzinga Edge Stock Rankings, United Health has a growth score of 39.89% and a momentum rating of 8.59%. Click here to see how it compares to other healthcare companies.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
