U.S. Agency To Investigate Possible Leak Of Medicare Rate Move
By Toni Clarke
WASHINGTON (Reuters) - The nominee to lead a key healthcare agency said on Tuesday that the agency was investigating events surrounding a decision on Medicare Advantage payment rates that sent shares of insurance companies soaring.
Marilyn Tavenner was asked about the April 1 rate decision at a Senate confirmation hearing by Republican Senator Charles Grassley of Iowa, who has said the rate decision might have been leaked to Height Securities, an investment research firm.
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Grassley's queries were based on an April 3 Wall Street Journal report that stock market gains on April 1 were due to a report by Height Securities, saying the announcement would favor insurers.
The firm sent an advisory to its clients 18 minutes before the close of trading on April 1, and before CMS released its decision publicly, Grassley said.
In those 18 minutes, he said the share prices and traded volumes of insurers Humana Inc, UnitedHealth Group Inc and Aetna Inc soared.
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