The federal government may have released market-sensitive information that reached Wall Street before the public, causing the stock of some major health insurance firms to dip between 3 percent and 9 percent, reports The Wall Street Journal.
According to the newspaper, an official within the Centers for Medicare and Medicaid held a conference call for industry leaders and offered up data that private Medicare plans were falling more than expected.
The news spread to Wall Street, which triggered an insurance share selloff.
“In the subsequent 10 trading days, shares of several major health insurance firms lost between 3 percent and 9 percent of their value. Over that same period, the S&P 500 was down 0.5 percent,” the newspaper reports.
Humana Inc. mentioned the information in a disclosure on Jan. 9, the first time it was publicized.