Tag Archives: acquisitions

Do consumers benefit when health insurers own providers?

Joseph Burns

About Joseph Burns

Joseph Burns (@jburns18), a Massachusetts-based independent journalist, is AHCJ’s topic leader on health insurance. He welcomes questions and suggestions on insurance resources and tip sheets at joseph@healthjournalism.org.

Whenever a major merger is announced in health care, the parties routinely tout the benefits for consumers, saying costs will decline and quality will improve. But do the facts bear out these claims?

During the press events announcing these deals, there’s no way to know. Researchers would need a baseline and several years of data to verify the merging partners’ claims and even then such results such as lower costs and improved quality take years to accumulate and measure. Continue reading

Hospital association says consolidation could reduce competition in 817 markets

Joseph Burns

About Joseph Burns

Joseph Burns (@jburns18), a Massachusetts-based independent journalist, is AHCJ’s topic leader on health insurance. He welcomes questions and suggestions on insurance resources and tip sheets at joseph@healthjournalism.org.

GraphicStock

GraphicStock

One local story to follow when any health insurer considers acquiring another is how the new entity could affect competition. By that standard, there could be 817 local stories to cover simply as a result of Anthem’s plan to acquire Cigna, according to the American Hospital Association (AHA).

In a letter Thursday to the U.S. Department of Justice, Melinda Reid Hatton, AHA’s senior vice president and general counsel, said Anthem’s acquisition of Cigna could reduce competition among health insurers in at least 817 geographic markets and affect 45 million Americans. Continue reading