Insurance Mega-Mergers Draw Concern From Federal, State Regulators
Ahead of a scheduled meeting today between Aetna and the U.S. Justice Department, sources say the department has "significant concerns" about the insurer's proposed acquisition of Humana. Meanwhile, in Connecticut, the proposed Anthem-Cigna merger is raising alarm from the state attorney general over its impact on market competition.
Reuters:
Justice Dept. Has Concerns Over Aetna-Humana Deal: Source
The U.S. Department of Justice has significant concerns about Aetna Inc's proposed acquisition of health insurer Humana Inc, a source familiar with the situation said on Thursday, sending shares of Humana down as much as 11 percent. Aetna's purchase of Humana would combine two of the largest providers of Medicare Advantage plans for elderly people, and investors have long been concerned the deal might pose a competition issue for antitrust regulators. (7/7)
Bloomberg:
Aetna Said To Meet With DOJ On Friday About Humana Deal
Aetna Inc. is preparing to meet with top U.S. Justice Department officials on Friday as it seeks to win antitrust approval for its $37 billion takeover of rival Humana Inc., people familiar with the matter said.
The insurer plans to meet with antitrust officials, including the department’s No. 3, Bill Baer, one of the people said, a top-level gathering that signals the review is entering a final, make-or-break stage. (Tracer, McLaughlin and Hammond, 7/7)
The CT Mirror:
Jepsen Concerned About Anthem-Cigna Deal, May Move To Block It
Connecticut Attorney General George Jepsen said he is concerned an Anthem-Cigna merger would result in decreased competition and higher premiums and will make a decision in as soon as two weeks whether to try to block it in court. “Our state's health insurance market is already concentrated,” Jepsen said in a statement. “Further concentration could lead to an unacceptable accumulation of market power, which arguably could lead to higher prices and negative effects on quality of care through reduced products, service and innovation.” (Radelat, 7/7)
Concord Monitor:
State: Anthem Is Slow To Provide Information About Proposed Health Insurance Merger With Cigna
The state review of a proposed merger between health insurance giants Anthem and Cigna is being delayed because Anthem has thus far provided “incomplete” information to state requests...Because of the inadequate level of information from Anthem, the review process has been halted, and no public hearing for the $48 billion merger scheduled. (Brooks, 7/8)