New York, February 17, 2026, 11:23 (EST) — Regular session
- UnitedHealth shares down 0.8% in late morning trade, lagging managed-care peers
- Report flagged CEO Stephen Hemsley’s private startup investments and potential conflicts
- Medicare Advantage rate deadlines and slower enrollment growth stay in focus
Shares of UnitedHealth Group Incorporated (UNH) fell 0.8% to $290.89 by 11:23 a.m. ET on Tuesday. The stock eased after a Wall Street Journal investigation said chief executive Stephen Hemsley has invested tens of millions of dollars in healthcare startups through his firm Cloverfields Capital, including companies that do business with or compete against UnitedHealth. UnitedHealth told the Journal that Hemsley “continues to comply fully with UnitedHealth Group’s conflict of interest and trading policies” and has moved his personal healthcare holdings into a trust run by independent trustees, the paper reported. (Wall Street Journal)
The governance headline hit a stock still sensitive to Washington and to costs. UnitedHealth shares sank nearly 19% on Jan. 27 after the company forecast a decline in 2026 revenue and the U.S. government floated a near-flat update for 2027 Medicare Advantage payment rates; “Investors hoping for a quick turnaround may have to wait longer than hoped,” Morningstar analyst Julie Utterback said at the time. (Reuters)
Policy matters because Medicare Advantage — the privately run alternative to traditional Medicare — is a core profit engine for big insurers. Enrollment reached nearly 35.5 million people as of Feb. 1, up about 3% from a year earlier, but growth during the Oct. 15–Dec. 7 sign-up window slowed to 1%, STAT reported, citing federal data. (STAT)
Under Delaware corporate law, directors are expected to put the company first and surface potential conflicts before acting. UnitedHealth’s own director conflict-of-interest policy tells board members to avoid relationships that could clash with the company unless the conflict is fully disclosed and safeguards are set to keep it from shaping decisions. (UnitedHealth Group)
UnitedHealth’s move stood out in a mostly steady group. Humana rose about 0.6% and Cigna gained 0.3%, while Elevance Health slipped 0.4%; the S&P 500 was up slightly.
Cost pressure is still the larger backdrop. STAT reported Tuesday that UnitedHealth executives pledged to use artificial intelligence to cut $1 billion of costs this year, with Hemsley saying the company was “clearly embarking on a new age of technology” in health care. (STAT)
UnitedHealth, in late January, reported 2025 revenue of $447.6 billion and set a 2026 outlook for revenue of more than $439 billion and adjusted earnings of more than $17.75 a share. Management described the guidance as part of a push to streamline operations and tighten financial discipline. (UnitedHealth Group)
Still, the stock’s slide may not last if the CEO-investment story stays in the realm of optics rather than action. The downside case is messier: investors could demand more disclosure around the trust and any overlaps with UnitedHealth’s business dealings, while Medicare Advantage pricing remains a lever that can force benefit cuts, market exits or thinner margins.
Next up, the dates are close. CMS said comments on its 2027 Medicare Advantage advance notice are due by 11:59 p.m. ET on Feb. 25, and it will publish the final rate announcement no later than April 6. Traders will also watch for any company filing or board response that adds detail on Hemsley’s outside investments and the trust structure. (Cms)
