The Justice Department has launched an antitrust investigation into UnitedHealth Group, focusing on its competitive practices in the healthcare industry, including its relationships between the UnitedHealthcare insurance unit and its Optum health-services-arm. This comes amid soaring healthcare costs and increased scrutiny on pharmacy benefit manager middlemen. The investigation also includes examining the company’s Medicare billing practices and the impacts of its doctor-group acquisitions on rivals and consumers. The DOJ declined to comment, while UnitedHealth did not immediately respond to a Reuters request for comment.
The U.S. Department of Justice has initiated an antitrust investigation into UnitedHealth Group, focusing on its relationships between the UnitedHealthcare insurance unit and its Optum health services arm, as well as its Medicare billing practices. The investigation comes amid concerns about rising healthcare costs and the role of pharmacy benefit manager middlemen. The company's acquisition of Change Healthcare and a recent cybersecurity attack at the billing and data systems provider have also drawn attention. UnitedHealth and the DoJ declined to comment, and the company's shares closed 2.3% lower following the news.
CVS Health Corp reported better-than-expected quarterly profit, driven by strong performance in its drugstores and pharmacy benefit management business, which offset higher-than-expected medical costs at its insurance unit. The company's health services business, including its pharmacy benefit management, saw an 8% growth in revenue, while its pharmacy and consumer wellness segment recorded a 6% revenue growth. CVS' insurance business also performed well, surpassing estimates in premiums, although medical costs were high due to increased utilization of services. Overall, CVS beat analysts' estimates for both product revenue and adjusted profit per share.
