by
Thomas Dworetzky, Contributing Reporter | September 21, 2016
Mega-mergers like those of Anthem-Cigna and Aetna-Humana won't cure the health care system's woes, in fact they may just make things worse, the American Medical Association states its latest data show.
“Competition and choice hang in the balance as the health insurance industry slides toward corporate monopolies,” the AMA stressed in its statement.
In its latest analysis, the association found that the Anthem-Cigna and Aetna-Humana deals would “quash competition” in 24 state markets.
"The AMA analyses show," said AMA President Dr. Andrew W. Gurman, that "with existing competition in health insurance markets already at alarmingly low levels, federal and state antitrust officials have powerful reasons to block harmful mergers and foster a more competitive marketplace that will operate in patients' best interests."
Both the U.S. Department of Justice (DOJ) and many state attorneys general have sued to block the mergers, a move the AMA “applauded.”
In response to this latest AMA opposition to the mergers, Anthem spokeswoman Sarah Yeager
told the Connecticut Mirror that the study “merely reiterates the comments the AMA has made previously and does not reflect the actual facts regarding Anthem’s acquisition of Cigna.”
She added that “together, Anthem and Cigna, who have limited overlap in a highly competitive industry, will be in a better position to improve consumer choice and quality,” adding that, “most of all, we will be better able to lead the transition to value-based care that will reduce costs while improving health outcomes.”
This official opposition to the latest AMA report comes as the latest salvo in the ongoing battle between the insurers involved in the two deals and the government.
In the other big merger,
HCB News reported in August, Aetna's decision to pull the plug on much of its participation in the Affordable Care Act's individual public exchanges in 2017 came suspiciously on the heels of a Justice Department decision to sue to stop its planned Humana merger.
This coincidentally-timed decision was a dramatic reversal of Aetna Chairman and CEO Mark T. Bertolini's earlier assertion the marketplace losses were a good investment and that "if we were to build out 15 markets, it would cost us somewhere between $600 million to $750 million to enter those markets and build out the capabilities necessary to grow that membership."
