DOJ files to stop UnitedHealth acquisition

The Department of Justice (DOJ) has filed an antitrust lawsuit in U.S. District Court in Washington in an effort to impede UnitedHealth Group Inc.’s proposed $2.6 billion acquisition of Sierra Health Services Inc.

According to the Department, UnitedHealth must sell portions of its business first to ensure competition.

Although UnitedHealth has agreed to those conditions, the DOJ’s antitrust lawsuit cited concerns that the merger would reduce competition in the Medicare health insurance market in Nevada, according to reports.

The Department’s proposal, which must be approved by the court, asks that UnitedHealth sell portions of its Medicare Advantage business in the Las Vegas-area for the merger to proceed, according to reports.

Otherwise, officials with the Department argue, the new company would control 94 percent of the Medicare Advantage market in that area.

This entry was posted on 27. February 2008 at 23:59 and is filed under insurance companys. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.