ROUNDS
Potential Aetna-Humana, Anthem-Cigna mergers spur antitrust concerns
THE COMBINED IMPACT of proposed mergers among four of the nation’s largest health insurance companies would exceed federal antitrust guidelines designed to preserve competition in as many as 97 metropolitan areas within Texas and 16 other states, according to special analyses of commercial health insurance markets issued by the American Medical Association. For those locations, the mergers would enhance market power. According to
the U.S. Department of Justice, “a merger enhances market power if it is likely to encourage one or more firms to raise price, reduce output, diminish innovation, or otherwise harm customers as a result of diminished competitive constraints or incentives.” The mergers also would raise significant competitive concerns in additional
markets. All told, the two mergers would diminish competition in up to 154 metropolitan areas within 23 states. “A lack of competition in health insurer markets is not in the best interest of patients or physicians,” said AMA President Steven J. Stack, MD. “If a health
TOP 10 STATES WITH BIGGEST DROP IN HEALTH INSURANCE COMPETITION, 2010-13
NEWS FROM AMERICA’S BEST MEDICAL SOCIETY
insurer merger is likely to erode com- petition, employers and patients may be charged higher than competitive premiums, and physicians may be pressured to accept unfair terms that undermine their role as patient ad- vocates and their ability to provide high-quality care. Given these factors, AMA is urging federal and state regu- lators to carefully review the proposed mergers and use enforcement tools to preserve competition.” A closer look at the Aetna-Humana
merger shows it would enhance mar- ket power in 15 metropolitan areas within seven states, including Florida, Georgia, Illinois, Kentucky, Ohio, Tex- as, and Utah. The merger would also raise significant competitive concerns in additional markets. AMA says the Aetna-Humana merger would dimin- ish competition in up to 58 metropoli- tan areas within 14 states, including Texas, Arizona, Florida, Georgia, Il- linois, Indiana, Kentucky, Louisiana, Mississippi, Ohio, Tennessee, Utah, Wisconsin, and West Virginia. According to AMA, on an individ-
ual basis, the Anthem-Cigna merger would enhance market power in 85 metropolitan areas within 13 states, including California, Colorado, Con- necticut, Georgia, Indiana, Kentucky, Maine, Missouri, Nevada, New Hamp- shire, New York, Ohio, and Virgin- ia. The merger would also raise signifi- cant competitive concerns in addition- al markets. All told, the association says, the Anthem-Cigna merger would diminish competition in up to 111 met-
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