Humana: DOJ Queried Many Medicare Advantage Plans, Providers
The insurer said a previously disclosed government query is part of a wider review involving many health care companies. Meanwhile Health Diagnostic Laboratory nears a settlement of a federal probe and the Supreme Court rules that a lower court made it too easy for Omnicare investors to sue the company.
Reuters:
Humana Says Previously Disclosed DOJ Query Involves Other Companies
Humana Inc, one of the largest U.S. providers of Medicare Advantage healthcare plans for older people, said on Tuesday that it believes a previously disclosed government query for information is part of a wider review involving many healthcare companies. Humana first said the U.S. Department of Justice had asked it to volunteer information about risk adjustment matters on Feb. 18. (Humer, 3/24)
Richmond Times-Dispatch:
HDL Nears Settlement Of Federal Investigation, May Face Large Fine
Health Diagnostic Laboratory Inc.’s likely settlement of a U.S. Department of Justice review will relieve uncertainty for the company, but likely will result in tighter government oversight of its business practices for at least five years. (Blackwell and Geiger, 3/24)
The Wall Street Journal:
High Court Gives Omnicare Another Shot At Stopping Investor Suit
The Supreme Court ruled Tuesday a lower court made it too easy for investors to proceed with a lawsuit alleging Omnicare Inc. misled investors in details for a plan to sell new shares. ... Shareholders brought the case in 2006, alleging Omnicare, the nation’s largest provider of pharmaceutical services in nursing homes, deceived the investing public about its relationships with drug companies. Rebate programs in which Omnicare received discounts from drug makers were really illegal kickback arrangements in which drug companies paid Omnicare to promote their products in long-term care facilities, investors alleged. (Kendall, 3/24)
