Morning Briefing
Summaries of health policy coverage from major news organizations
Justice Department Sues To Block Health Care Mega-Mergers
The Washington Post: Justice Department Sues To Block Two Health Care Mega-Mergers
The Justice Department on Thursday sued to block two health insurance industry mega-mergers, arguing that allowing Anthem to buy Cigna and Aetna to merge with Humana, would harm millions of Americans, raise prices and eliminate competition. Federal regulators have been mulling over the $54 billion merger between Anthem and Cigna and the $37 billion deal between Aetna and Humana for months. On Thursday, they said the deals would be too harmful to the marketplace to proceed. (Merle and Johnson, 7/21)
The New York Times: U.S. Sues To Block Anthem-Cigna And Aetna-Humana Mergers
The United States, as well as a number of states and the District of Columbia, are seeking to break up the combination of Anthem and Cigna, for $48 billion, as well as Aetna’s $37 billion deal with Humana. In the documents, the Justice Department asserts that letting these four companies merge would quash competition among insurers, leading to higher prices for consumers and reducing their benefits. The health insurance industry has five major companies, and if these deals went through, that number would be reduced to three. (Picker, 7/21)
The Wall Street Journal: U.S. Files Suits Seeking To Block Insurer Deals
The government lawsuit challenging the Anthem-Cigna combination alleged the deal “would combine two of the few remaining commercial health-insurance options for businesses and individuals in markets throughout the country. And in doing so, it would substantially lessen competition, harming millions of American consumers, as well as doctors and hospitals.” The department’s legal complaint against the Aetna-Humana deal said it “would lead to higher health insurance prices, reduced benefits, less innovation and worse service for over a million Americans.” (Kendall and Wilde Mathews, 7/21)
The Associated Press: Feds Sue Stop Health Insurer Combos, See Threat To Consumer
Aetna Inc. proposed last summer to buy Humana Inc. for $34 billion, while Blue Cross-Blue Shield insurer Anthem Inc. moved to acquire Cigna Corp. for $48 billion. Industry experts say the impact on consumers would years to materialize and could offer savings in some areas, along with the risk of higher costs elsewhere. (7/21)
USA Today: Obama Admin Seeks To Block Mega Health-Care Mergers
The moves reflect the latest in a series of actions by the Justice Department's antitrust division to halt what it perceives as anti-competitive trends in the private sector. Government officials are said to be concerned about the effect of the mergers on consumers. (Bomey, 7/21)
