UnitedHealth's California Clash

UnitedHealth (UNH Quote) is starting to look like a company with too much on its plate.

For months, UnitedHealth leaders have been consumed by an escalating probe into the well-timed stock options they received in the past. That distraction has come at a crucial time for the company, as it seeks to overcome challenges tied to big recent acquisitions.

Take last year's buyout of PacifiCare, for example.

The acquisition greatly expanded UnitedHealth's presence in California, where competitors like nonprofit Blue Cross/Blue Shield have long dominated the market. But UnitedHealth made an important concession when pushing that acquisition through. UnitedHealth agreed to sever a close relationship with Blue Shield of California, which had been leasing its network of health care providers to the company for years, in response to antitrust concerns from regulators. ...