The Biden administration has launched an antitrust investigation into healthcare giant UnitedHealth Group in recent weeks, following a series of other federal antitrust lawsuits, according to the Wall Street Journal.
The Department of Justice (DOJ) investigation is examining whether the relationship between UnitedHealth's insurance division and its medical services division, Optum, stifles competition in the broader industry. according to To the people interviewed by WSJ. News of the investigation comes just one day after the Federal Trade Commission (FTC) announced a lawsuit seeking to block the Kroger-Albertsons merger, following a series of antitrust violations by both the FTC and the Department of Justice. ing. (Related: 'The possibilities are unknown': What Nvidia's meteoric stock price rise says about the economic future)
UnitedHealth was previously the subject of an antitrust challenge from the Department of Justice over its bid to acquire Change Healthcare, which is expected to close in 2022, according to the Journal. The Justice Department has also criticized UnitedHealth's current $3.3 billion acquisition of home health care company Amedisys.
The health care giant's insurance division currently provides coverage to approximately 53 million people through employer plans, Medicare, and Medicaid. Approximately 90,000 physicians, numerous surgical centers and other assets are currently under his Optum control.
The Biden administration is pursuing a number of top companies, including Amazon, for anticompetitive conduct, with the FTC alleging that Amazon illegally maintains a monopoly by using strategies to prevent it from lowering prices.
🚨Breaking News: US begins antitrust investigation into UnitedHealth
Will Lina Khan finally aim for a medical insurance oligopoly?
I am sure we will follow this closely. Many of the questions the Department of Justice is asking we already know the answers to:
▶ Insurance companies that own PBMs… pic.twitter.com/DjWTO65LRm
— Dr. Danish (@operationdanish) February 27, 2024
Federal regulators have failed to block the $68.7 billion merger between Microsoft and Activision, with a judge rejecting a motion to block the deal in July 2023. In 2021, a federal judge dismissed antitrust claims from the FTC that Facebook had a monopoly on personal social networking services.
Some private insurers, such as UnitedHealth, are likely to benefit from a provision in the Anti-Inflation Act signed by President Joe Biden that allows Medicare to negotiate prices for certain drugs with drug companies. AARP, which represents the interests of retired Americans and receives funding from UnitedHealth, has spent tens of millions of dollars promoting this provision.
The Department of Justice declined to comment to the Daily Caller News Foundation. UnitedHealth did not respond to a request for comment.
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