Health Care Stocks Like UnitedHealth, CVS Tank On Wednesday: Here's Why

Benzinga

Healthcare stocks plunged in after-hours trading Wednesday after the Centers for Medicare & Medicaid Services announced a sweeping crackdown on Medicare Advantage plans. CMS will now audit all eligible Medicare Advantage contracts annually, expand its audit workforce from 40 to 2,000 coders, and deploy advanced technology to expedite reviews. Administrator Dr. Mehmet Oz emphasized the agency’s commitment to eliminating fraud and ensuring accurate billing. CMS estimates MA plans overbill the government by roughly $17 billion yearly. The agency will also work with HHS’s Office of Inspector General to recover previously identified overpayments.

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00:00It's Benzinga bringing Wall Street to mainstream.

00:02Healthcare stocks plunged an after-hours trading Wednesday after the Centers for Medicare and

00:06Medicaid Services announced a sweeping crackdown on Medicare Advantage plans. CMS will now audit

00:11all eligible Medicare Advantage contracts annually, expand its audit workforce from 40 to 2,000 coders,

00:17and deploy advanced technology to expedite reviews. Administrator Dr. Mehmet Oz emphasized

00:22the agency's commitment to eliminating fraud and ensuring accurate billing. CMS estimates MA plans

00:28will rebuild the government for roughly $17 billion each year. The agency will also work

00:32with HHS's Office of Inspector General to recover premium.

00:36For all things money, visit Benzinga.com slash GSTV.

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