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%.
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