Skip to main content
Sister Publication Links
  • ESG: THE NEW IMPERATIVE
Subscribe
  • My Account
  • Login
  • Subscribe
  • News
    • Current News
    • COVID-19
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Digital Health
  • Insights
    • ACA 10 Years After
    • Best Practices
    • Special Reports
    • Innovations
  • Data/Lists
    • Rankings/Lists
    • Interactive Databases
    • Data Points
  • Op-Ed
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Awards
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
    • Women in Healthcare
    • - Luminaries
    • - Top 25 Diversity Leaders
    • - Leaders to Watch
    • - Luminaries
    • - Top 25 Women Leaders
    • - Women to Watch
  • Events
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Custom Media Event: ESG Summit
    • Transformation Summit
    • Women Leaders in Healthcare Conference
    • Social Determinants of Health Symposium
    • Leadership Symposium
    • Health Care Hall of Fame Gala
    • Top 25 Women Leaders Gala
    • Best Places to Work Awards Gala
    • Top 25 Diversity Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Supply Chain Revenue Cycle
    • - Hospital at Home
    • - Workplace of the Future
    • - Strategic Marketing
    • - Virtual Health
  • Listen
    • Podcast - Next Up
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • MORE +
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Law & Regulation
February 24, 2022 11:53 AM

UnitedHealth Group to fight DOJ lawsuit blocking Change Healthcare deal

Nona Tepper
Mari Devereaux
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    UnitedHealth_Group_AP_fullsize_i_i_i.jpg
    Kris Tripplaar/Sipa USA

    The U.S. Department of Justice sued to block UnitedHealth Group's $13 billion proposed acquisition of health IT company Change Healthcare on Thursday, just three days before the healthcare companies promised to complete the deal.

    Regulators wrote that UnitedHealth Group's proposed acquisition of data broker Change Healthcare would give its health insurance arm access to proprietary information on what its competitor insurers pay providers, how they construct their health plans and create a monopoly when it comes to claims clearinghouse technology, violating the federal antitrust restrictions outlined in the Clayton Act.

    UnitedHealth Group disputed these claims and plans to vigorously defend its case in court, a spokesperson wrote in an email.

    "Change Healthcare and Optum—together—can increase efficiency and reduce friction in healthcare, producing a better experience and lower costs," the spokesperson said. "The department's deeply flawed position is based on highly speculative theories that do not reflect the realities of the healthcare system."

    Currently, Change's claims editing solution, ClaimsXten, is used by 9 of the nation's 10 largest insurers—all except UnitedHealth Group, which operates its own clearinghouse through OptumInsight—to evaluate and pay claims. UnitedHealth Group's rival product has helped drive business for Change since health plans don't want to conduct business with their competitor, the lawsuit says.

    Download Modern Healthcare’s app to stay informed when industry news breaks.

    Change is also the top resource that health insurers rely on to compete with UnitedHealth Group, a senior justice official said. By ensuring accuracy, avoiding overpayments and decreasing administrative waste, Change saves UnitedHealth Group's rivals tens of billions of dollars annually, while also reducing healthcare costs for employers and patients.

    If the merger went through, United would control more than 75% of the claims editor market, and leave other insurers unable to avoid the company's grip on the market. Because Change is the leading electronic data interchange clearinghouse among providers, payers would be unable to bypass the company—even if they switched clearinghouses, as their insurance data would still flow through Change's network, according to a senior justice official.

    "The proposed transaction threatens an inflection point in the healthcare industry by giving United control of a critical data highway through which about half of all Americans' health insurance claims pass each year," said Doha Mekki, principal deputy assistant attorney general of the Justice Department's Antitrust Division, in a news release. "The department's lawsuit makes clear that we will not hesitate to challenge transactions that harm competition by placing so much control of data and innovation in the hands of a single firm."

    Download Modern Healthcare’s app to stay informed when industry news breaks.

    UnitedHealth Group announced its plan to purchase Change Healthcare for $13 billion last March, with the aim of adding the company to its Optum health services and provider division. At the time they entered into the agreement, United and Change also inked a separate contract requiring United to immediately increase its purchases of Change products, ensuring that if the transaction fails to proceed, United will still pay Change about $60 million more annually than before the agreement was signed.

    In the year since the deal was announced, hospital, pharmacy and antitrust advocates have spoken out against the acquisition, saying that it would ultimately create a monopoly for Change Healthcare's services and raise costs for providers, pharmacists and consumers. The American Hospital Association and National Community Pharmacists Association both said they applauded the DOJ's move to block the deal, despite proposed divestitures from UnitedHealth Group and Change Healthcare.

    To appease critics and regulators, the companies teased selling certain parts of their businesses, with UnitedHealth Group saying it could divest up to $650 million worth of assets, and Change reportedly looking to offload its $1 billion payment integrity operation.

    Last week, the companies said they planned to finalize the deal by this Sunday. Change Healthcare will now continue working with United to close the deal by April 5, a spokesperson wrote in an email.

    "We will continue our support of UHG in working toward closing the merger as we comply with our obligations under the merger agreement," the spokesperson said.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Doctor giving child a shot
    FDA authorizes 1st COVID-19 shots for infants, preschoolers
    drugs-money_i.png
    FTC takes aim at PBM business practices in new inquiry
    Sponsored Content
    Daily Dose Newsletter: Sign up to receive a late afternoon weekday roundup of that day’s breaking news and developments in healthcare.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • COVID-19
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Digital Health
    • Insights
      • ACA 10 Years After
      • Best Practices
      • Special Reports
      • Innovations
    • Data/Lists
      • Rankings/Lists
      • Interactive Databases
      • Data Points
    • Op-Ed
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Awards
      • Nominate/Eligibility
      • 100 Most Influential People
      • 50 Most Influential Clinical Executives
      • Best Places to Work in Healthcare
      • Excellence in Governance
      • Health Care Hall of Fame
      • Healthcare Marketing Impact Awards
      • Top 25 Emerging Leaders
      • Top 25 Innovators
      • Diversity in Healthcare
        • - Luminaries
        • - Top 25 Diversity Leaders
        • - Leaders to Watch
      • Women in Healthcare
        • - Luminaries
        • - Top 25 Women Leaders
        • - Women to Watch
    • Events
      • Conferences
        • Transformation Summit
        • Women Leaders in Healthcare Conference
        • Social Determinants of Health Symposium
        • Leadership Symposium
      • Galas
        • Health Care Hall of Fame Gala
        • Top 25 Women Leaders Gala
        • Best Places to Work Awards Gala
        • Top 25 Diversity Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Supply Chain Revenue Cycle
        • - Hospital at Home
        • - Workplace of the Future
        • - Strategic Marketing
        • - Virtual Health
      • Webinars
      • Custom Media Event: ESG Summit
    • Listen
      • Podcast - Next Up
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • MORE +
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing