UnitedHealth Group Inc. shares UNH,
It fell more than 2% on Tuesday after the Wall Street Journal reported that the Justice Department had launched an antitrust investigation into the health insurance giant.
Justice Department investigators have interviewed industry representatives in sectors in which UnitedHealth competes, including physician groups, the Journal reported Tuesday, asking about some relationships between the company’s UnitedHealthcare insurance unit and its services division Optum sanitary ware.
Antitrust investigators have questioned how UnitedHealth’s acquisitions of physician groups might affect competitors and consumers, the Journal reported, citing people familiar with the meetings.
UnitedHealth and the Justice Department did not immediately respond to MarketWatch’s requests for comment.
According to a recent report from the American Medical Association, 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.
The Justice Department sued in 2022 to block UnitedHealth’s acquisition of Change Healthcare Inc., saying the deal would allow the company to use sensitive competitive data to reduce competition. The government’s challenge was ultimately rejected in court.
UnitedHealth last month reported full-year 2023 revenue of $371.6 billion, up 15% from the previous year, with Optum accounting for more than 60% of those sales.
Shares of UnitedHealth have fallen 2.5% year to date, while the S&P 500 SPX index has gained 6.5%.