UnitedHealth Group Incorporated (UNH) Faces Mounting Backlash Amid Billing Disputes, CEO Resignation, and Criminal Probe

UnitedHealth Group Incorporated (NYSE:UNH)'s UnitedHealthcare, the largest private health insurer in the U.S., is facing unprecedented public and regulatory scrutiny amid mounting patient frustration and industry turmoil. In 2023, San Diego benefits advocate Sue Cover spent six months battling a $1,000 billing dispute, highlighting the widespread challenges Americans face with insurance companies. UnitedHealthcare, which covers over 29 million Americans and controls 15% of the market, has become a focal point for criticism over denied claims, administrative hurdles, and rising healthcare costs.

The company’s reputation has suffered from high claim denial rates, 33% for certain ACA plans in 2023, among the highest in the industry, and lawsuits alleging improper use of AI to deny care. UnitedHealth Group Incorporated (NYSE:UNH)’s influence extends beyond insurance, with ownership of pharmacy benefit manager Optum Rx and affiliations with about 90,000 doctors, raising concerns about conflicts of interest and profit-driven care.

Recent setbacks include a $300 billion market cap loss, CEO Andrew Witty’s resignation, a criminal probe into Medicare Advantage practices, and fallout from a major ransomware attack on its Change Healthcare subsidiary. Experts say UnitedHealth Group Incorporated (NYSE:UNH)’s woes are symptomatic of a broader, costly, and convoluted U.S. healthcare system where insurers’ cost-cutting tactics can delay or deny critical patient care.

While we acknowledge the potential of UNH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than UNH and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Cancer Stocks to Invest in for Long-Term Gains and 10 Most Oversold Stocks to Buy According to Billionaires.

Disclosure: None.