Aetna To Argue Traditional Medicare Will Give Consumers Options Regardless Of Merger
The company, which is defending its $37 billion deal with Humana, insists that it won't create a monopoly when it comes to Medicare Advantage plans.
USA Today:
Aetna, Humana Face Federal Antitrust Lawyers In Court
Lawyers for insurance giants Aetna and Humana will begin battling government antitrust lawyers Monday in a Washington, D.C., court, seeking to get legal clearance to complete their planned $37 billion merger. Worried that the deal would raise prices and lower benefits for customers, the Department of Justice, eight states and the District of Columbia sued to block the deal. (Yu, 12/4)
CNBC:
Aetna-Humana Antitrust Trial To Hinge On Medicare Market
If Aetna and Humana are allowed to merge, will the 17 million seniors in the Medicare Advantage market be left with too little choice and face higher prices for health insurance? That's the key issue in an antitrust trial on the proposed union set to begin in U.S. District Judge John Bates' courtroom Monday morning. The Obama administration argues in its pre-trial brief that the $37 billion deal would create Medicare Advantage monopolies in 70 counties and increase market concentration in hundreds more across the country. Aetna's attorneys counter that the private Medicare Advantage (MA) market competes with the traditional Medicare government program, so that seniors will continue to have choice. (Coombs, 12/4)
Bloomberg:
Aetna Starts Bid To Salvage Humana Deal In U.S. Antitrust Trial
Aetna Inc.’s attempt to assuage U.S. antitrust concerns over its $37 billion takeover of Humana Inc. by selling assets to a smaller company landed with a resounding thud. On Monday, the insurers will try to convince a federal judge that the Justice Department’s rejection was wrong as the government’s lawsuit seeking to block the deal goes to trial in Washington. The company Aetna wants to sell assets to, Molina Healthcare Inc., is unlikely to replace the competition that would be lost from the merger, according a filing by the U.S. Molina was criticized by the government as a junk-rated company whose previous foray into the Medicare Advantage market flopped. (Harris and McLaughlin, 12/5)
And a look at the other major health care merger trial playing out at the moment —
Politico Pro:
Key Questions As Anthem-Cigna Antitrust Trial Breaks For A Week
Two weeks of proceedings have given way to halftime in the Anthem-Cigna antitrust trial, which has put a spotlight on the unusual degree of infighting between the prospective merger partners. The trial's first phase has dealt with national accounts, which the Justice Department defines as employers with more than 5,000 workers, and whether Anthem’s proposed $54 billion acquisition of Cigna would be detrimental to competition in that market. ... But for those worried they will suffer withdrawals while the Athem-Cigna battle is adjourned, have no fear: Trial on a separate lawsuit brought by DOJ challenging Aetna’s $37 billion acquisition of Humana will commence Monday morning in the same Washington, D.C., courthouse. (Demko, 12/5)
