In an election year, Washington, D.C. focuses on Medicare Advantage oversight, with UnitedHealth Group under scrutiny for nursing home practices leading to allegations of seniors dying due to hospital transfer delays under their Medicare plans.

Federal agencies are increasing audits of Medicare Advantage contracts and billing, impacting private insurers’ managed care. UnitedHealth shares are trading 34% below their 52-week high, despite recovering somewhat from a difficult 2025.

UnitedHealth, valued at nearly $311.6 billion, is facing scrutiny for both financials and ethics in nursing home care. The company’s stock performance may be affected by regulatory risks in the long term.

UnitedHealth’s third-quarter 2025 results showed solid growth but also cost and policy pressure. Despite a 6.18% upside surprise in adjusted EPS, profitability margins are thinner, highlighting continued operational strength.

The scrutiny of UnitedHealthcare’s nursing home incentives and care decisions is crucial, as the segment generated $87.1 billion in revenue, serving 50.1 million domestic consumers.

UnitedHealth’s growth story relies heavily on Optum, with a focus on expanding their Optum Rx model. Berkshire Hathaway bought a substantial amount of UNH shares in Q2 2025, indicating confidence in the company’s potential.

UnitedHealth is testing an AI-driven system to enhance medical claims processing, aiming to reduce costs and improve patient care. The company is scheduled to report earnings on January 27, with analysts expecting a YOY decline in EPS.

Analysts hold a “Moderate Buy” rating on UnitedHealth, with price targets suggesting a 15.3% upside potential. Despite regulatory challenges, UnitedHealth is seen as a high-quality business with growth potential in the long term.

Read more at Yahoo Finance: UnitedHealth Faces Renewed Scrutiny into Its Nursing Home Practices. What Does That Mean for UNH Stock?