Billionaire entrepreneur Mark Cubanon Thursday questioned the lack of action by the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) against health insurers.
Risks of zero-premium registrations
Cuban turned to He also suggested that the total $35 billion in premium tax credits could and should be returned to taxpayers.
Cuban wondered if any short sellers are discussing this issue, as they typically do more due diligence than anyone else.
Cuban’s post came in response to a Politico report On Thursday, health insurers now publicly acknowledged widespread fraud in the Affordable Care Act (ACA) marketplace, a sharp reversal after years of downplaying the issue.
Their admission is part of a last-ditch effort to convince Republicans to renew increased Obamacare subsidies, which have significantly boosted insurers’ profits since 2021. But despite intense lobbying and arguments about affordability for millions, Republican lawmakers are showing little interest in maintaining the higher subsidy levels put in place during the pandemic.
The Shark Tank star had previously argued that rising deductibles have essentially turned health insurance into a “scam” because many people cannot afford to use the coverage they pay premiums for. When the deductible is so high that patients don’t seek care, he said they may be better off paying out-of-pocket rather than buying insurance they can’t afford.
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DOJ focuses on large-scale healthcare fraud
Earlier this year, the DOJ dismantled a $14 billion health care fraud scheme, resulting in indictments against more than 320 individuals and the seizure of assets worth more than $245 million. The crackdown uncovered fraudsters operating from several countries, including Russia, Eastern Europe and Pakistan.
UnitedHealth Group (NYSE:UNH) was among the companies under federal scrutiny for their Medicare practices. The investigation focused on how the company used doctors and nurses to inflate or maximize government payments. The investigation, which began at least a year ago, gained momentum when former employees came forward to share information with federal investigators.
The company reaffirmed the integrity of its operations and began cooperating with the DOJ’s formal criminal and civil requests. Shares of UnitedHealth are down 33.26% so far in 2025 on reports of fraud.
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