House Judiciary Subpoenas Health Insurers Over ACA Fraud Allegations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: seekingalpha
- Subpoena Issued: The House Judiciary Committee has subpoenaed eight health insurers, including CVS Health and Centene, requiring them to provide information related to subsidized ACA enrollees, indicating a strong focus on potential market fraud.
- Response Deadline: These insurers must respond to the subpoenas by February 23, reflecting the committee's strict demands for transparency and compliance, which could impact the operational strategies of these companies.
- Background of Prior Investigation: The subpoenas follow insufficient responses to a December request, highlighting ongoing regulatory scrutiny over potential fraud, which may lead to stricter oversight and compliance measures within the industry.
- Impact of Premium Increases: Millions of ACA enrollees are facing sharp premium hikes due to Congress's failure to extend COVID-era tax credits, potentially resulting in customer attrition and market share decline, prompting insurers to reassess their pricing strategies in response to market changes.
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Analyst Views on CVS
Wall Street analysts forecast CVS stock price to rise
17 Analyst Rating
16 Buy
1 Hold
0 Sell
Strong Buy
Current: 77.930
Low
91.00
Averages
96.71
High
105.00
Current: 77.930
Low
91.00
Averages
96.71
High
105.00
About CVS
CVS Health Corporation is a health solutions company. The Company's segments include Health Care Benefits, Health Services, Pharmacy & Consumer Wellness and Corporate/Other. Health Care Benefits segment offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, PDPs and Medicaid health care management services. Health Services segment provides a full range of pharmacy benefit management (PBM) solutions through its CVS Caremark operations and delivers health care services in its medical clinics, virtually, and in the home. Pharmacy & Consumer Wellness segment dispenses prescriptions in its CVS Pharmacy retail locations and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs, diagnostic testing and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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