Justice Department Sues UnitedHealth Over Nearly $8B Deal To Buy Tech Company
MINNEAPOLIS (AP) -- Federal regulators are suing to block UnitedHealth Group's purchase of the technology company Change Healthcare, a deal announced more than a year ago.
The U.S. Department of Justice said Thursday that the proposed deal would hurt competition and give UnitedHealth Group — which runs the nation's largest insurer — access to sensitive claims information from competitors.
"If America's largest health insurer is permitted to acquire a major rival for critical health care claims technologies, it will undermine competition for health insurance and stifle innovation in the employer health insurance markets," U.S. Attorney General Merrick Garland said in a statement.
Justice department officials said in the statement that the deal would give UnitedHealth control of a "critical data highway through which about half of all Americans' health insurance claims pass each year."
A UnitedHealth spokesman said Thursday the Justice department's "deeply flawed position is based on highly speculative theories that do not reflect the realities of the health care system. We will defend our case vigorously."
UnitedHealth said in January 2021 that it would spend nearly $8 billion in cash to add the company and boost its ability to provide data analytics and revenue cycle management support, among other offerings.
The deal totals around $13 billion counting debt, and the companies had initially expected it to close in the second half of 2021.
Aside from running a health insurer, UnitedHealth also operates a growing Optum business that provides care, manages pharmacy claims and offers technology services and support.
The Department of Justice was joined by attorneys general from Minnesota and New York in filing the lawsuit.
Shares of UnitedHealth fell more than 1%, or nearly $8, to $451.63 in midday trading while broader indexes also dropped.
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