Cyberattack Hangover: Senators Question UnitedHealth's Loan Playbook

UnitedHealth Group Incorporated UNH is again under scrutiny after questions were raised about how it handled loans to healthcare providers in the wake of the 2024 Change Healthcare cyberattack. UNH extended billions in temporary loans to keep providers afloat as the breach disrupted claims processing. However, lawmakers now suggest that the company has taken an aggressive stance on repayments, demanding quick payback or threatening to withhold payment on their insurance claims.

Senators Elizabeth Warren and Ron Wyden have voiced concerns that these practices may have added pressure on doctors and hospitals that were already financially strained through no fault of their own. This issue will likely put UNH at the center of another regulatory storm. Healthcare providers are its essential partners and the perception of repayment pressures following a crisis may weigh on confidence in the insurer’s role as a system stabilizer.

It also comes at a time when UNH is already facing probes from the Justice Department into Medicare billing practices, reimbursement policies and OptumRx pharmacy benefit operations. Together, these matters could prompt a broader debate around the company’s size and influence within healthcare.

Publicly, this may add to concerns that UnitedHealth is placing financial priorities ahead of provider support, which could create unease among policymakers, doctors and patients. While the immediate impact on revenues may be limited, the situation could create long-term challenges around regulatory scrutiny and the company’s reputation.

UNH, along with peers such as Centene Corporation CNC and Elevance Health, Inc. ELV, is also contending with rising medical costs, which have already led to trimmed 2025 guidance. UnitedHealth’s medical care ratio has increased from 83.2% in 2023 to 85.5% in 2024 and averaged 87.1% in the first half of 2025.

Centene projects its HBR to rise to 93.5% in the second half of 2025 compared with 89.4% in the last year. Similarly, Elevance’s benefit expense ratio is expected to reach 90% in 2025, up from 88.5% witnessed in 2024.

UnitedHealth’s Price Performance, Valuation and Estimates

Shares of UNH have lost 38.7% in the year-to-date period compared with the industry’s decline of 30.5%.

From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.14, still up from the industry average of 15.01. UNH carries a Value Score of B.

The Zacks Consensus Estimate for UnitedHealth’s 2025 earnings is pegged at $16.21 per share, implying a 41.4% drop from the year-ago period.

The stock currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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