More than 400 Department of Health and Human Services employees were privy to a billion-dollar Medicare decision. Federal investigators are looking into the possibility that HHS insiders tipped off Wall Street investors.
According to the Washington Post, a review of HHS employee emails shows that employees received advanced word the Medicare decision weeks before the official announcement. Trading in Humana, one of the top providers of Medicare Advantage plans, spiked before the announcement.
HHS insiders had advance word of the April 1 decision to increase spending by $8 billion on the Medicare Advantage program. HHS officials told the Washington Post the wide-spread information was necessary due to the complexity of Medicare policy. Federal investigators want to know how Wall Street investors learned of the federal ruling. The Securities and Exchange Commission has launched its own investigation into possible Wall Street investors misconduct.