UnitedHealth Group faces criminal inquiry

Prosecutors in Manhattan have launched a criminal investigation into stock-option grants to senior executives at UnitedHealth. The Minnetonka, Minnesota-based health insurer also said the IRS has asked for access to documents, suggesting that an investigation into tax issues may be a possibility. For weeks, the consensus has been that it is unlikely that CEO William McGuire will resign as a result of the affair. Criminal charges could change things in the blink of an eye. UnitedHealth Group shares fell slightly in morning trading on the news, before recovering.

- read this article from The Wall Street Journal (sub. req.)

PLUS: Omnicare, a PBM specializing in the nursing home market, filed a lawsuit against UnitedHealth charging that the health plan "conspired" with PacifiCare while the two companies were negotiating Medicare Part D contracts. Article