BUSINESSUnited delays quarterly filing, but earnings upThe insurer says it's conducting a review of its stock options program.By Jonathan G. Bethely, amednews staff. Sept. 4, 2006. UnitedHealth Group, like most health plans, appears to be financially healthy. But storm clouds from an investigation into the company's stock-option practices are rolling in. On Aug. 10, the company announced it would delay filing its second-quarter 2006 report with the Securities and Exchange Commission, because of various investigations over whether the company improperly backdated stock options awarded to top executives. Currently, investigations by the SEC, the U.S. Dept. of Justice, the Internal Revenue Service, and the attorney general in United's home state of Minnesota are all looking into irregularities in the stock options program. Calls to United by AMNews weren't returned at press time. The company released a statement saying it needs to determine whether it will have to restate results because of inappropriate options accounting. United did release earnings results for the second quarter, which ended June 30. Earnings were up 26% over the like period in 2005, earnings per share were up 21% and revenues were up 57%. Such financial good news for the company -- which has been criticized by physicians for its recent aggressive acquisition strategy, among other things -- is tempered by the looming investigations. [...]Full text of American Medical News content is available to AMA members and paid subscribers.
Copyright 2006 American Medical Association. All rights reserved.
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