UnitedHealth's stock falls after report of antitrust investigation
By Eleanor Laise
Investigators are examining relationships between UnitedHealthcare and Optum units, Wall Street Journal reports
UnitedHealth Group Inc. shares (UNH) fell more than 2% Tuesday after the Wall Street Journal reported that the Justice Department has launched an antitrust investigation into the health-insurance giant.
Justice Department investigators have interviewed industry representatives in sectors where UnitedHealth competes, including doctor groups, the Journal reported Tuesday, asking about certain relationships between the company's UnitedHealthcare insurance unit and its Optum health-services division.
Antitrust investigators have asked how UnitedHealth's acquisitions of doctor groups might affect competitors and consumers, the Journal reported, citing people familiar with the meetings.
The Justice Department declined to comment. UnitedHealth did not respond to a MarketWatch request for comment.
UnitedHealth is the dominant U.S. health insurer in commercial markets, with a 14% market share, as well as in Medicare Advantage, with a 28% market share, according to a recent report by the American Medical Association.
The Justice Department in 2022 sued to block UnitedHealth's acquisition of Change Healthcare Inc., saying the deal would let the company use competitively sensitive claims data to reduce competition. The government's challenge was ultimately rejected in court.
UnitedHealth last month reported full-year 2023 revenues of $371.6 billion, up 15% from a year earlier, with Optum accounting for over 60% of those sales.
UnitedHealth's stock has dropped 2.5% in the year to date, while the S&P 500 SPX has gained 6.5%.
-Eleanor Laise
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
02-27-24 1816ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
How Anti-Obesity Drugs Are Innovating the Healthcare Market
-
What’s Happening In the Markets This Week
-
Why Immigration Has Boosted Job Gains and the Economy
-
What to Invest in During High Inflation
-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
After Earnings, Is Lyft Stock a Buy, a Sell, or Fairly Valued?
-
8 Stock Picks in the Apparel Industry
-
Baidu Earnings: Advertising Weakness Offset by Continued Growth In Cloud Business
-
Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?
-
Walmart Earnings: Low Prices and Strong Digital Presence Drive Market Share Gains
-
After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?
-
Cisco Earnings: Positive Guidance and Splunk Inclusion Align With Our Long-Term Thesis
-
3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing