Health insurer Humana announced it has ended business with Washington lobbying firm Greeberg Traurig and begun an internal investigation into a leak in which a lobbyist allegedly shared nonpublic political information that led to a huge spike in the company's stock prices last month, according to a report by the Wall Street Journal.
The WSJ reported earlier this week that Mark Hayes, a lobbyist who represented Humana, confirmed news of CMS' decision to raise Medicare Advantage payment rates next year, instead of lowering them as was previously anticipated, to investment-research firm Height Securities. The firm then emailed clients informing them of the move, raising speculation from regulators and competitors that the release of not-yet-publicly announced information could have violated insider trading laws.
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The WSJ reported earlier this week that Mark Hayes, a lobbyist who represented Humana, confirmed news of CMS' decision to raise Medicare Advantage payment rates next year, instead of lowering them as was previously anticipated, to investment-research firm Height Securities. The firm then emailed clients informing them of the move, raising speculation from regulators and competitors that the release of not-yet-publicly announced information could have violated insider trading laws.
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