A large uptick in health insurance stocks immediately following a federal reversal in payment rates has prompted a Congressional report investigating the political intelligence industry, according to a report by the Wall Street Journal.
Health insurance stocks shot up earlier this week after CMS reneged on its plan to cut Medicare Advantage rates to private insurers next year, opting instead to raise the rates by more than 3 percent. Driving the stock surge was a memo sent out by a Washington-based investment research firm that informed investors 15 minutes before the markets closed Monday that CMS would do a 180-degree turn on Medicare Advantage, pumping some large insurers' shares up as much as 6 percent, according to the report. The official government announcement was not made until about 35 minutes after the memo was released.
Although not illegal, selling political intelligence poses an unfair advantage in the financial markets, said Sen. Charles Grassley (R-Iowa), who is pushing for more oversight of the industry.
Novant Health Profit Soars to $274M in 2012
CO-OP CEO Elected Illinois HFMA President
Health insurance stocks shot up earlier this week after CMS reneged on its plan to cut Medicare Advantage rates to private insurers next year, opting instead to raise the rates by more than 3 percent. Driving the stock surge was a memo sent out by a Washington-based investment research firm that informed investors 15 minutes before the markets closed Monday that CMS would do a 180-degree turn on Medicare Advantage, pumping some large insurers' shares up as much as 6 percent, according to the report. The official government announcement was not made until about 35 minutes after the memo was released.
Although not illegal, selling political intelligence poses an unfair advantage in the financial markets, said Sen. Charles Grassley (R-Iowa), who is pushing for more oversight of the industry.
More Articles on Healthcare Finance:
Senate Schedules Confirmation Hearing for Marilyn TavennerNovant Health Profit Soars to $274M in 2012
CO-OP CEO Elected Illinois HFMA President