U.S. District Judge Amy Berman Jackson has blocked the merger of Anthem and Cigna, the second court ruling this year against megamergers in the health insurance industry.
On Thursday, Anthem said it would appeal the Feb. 8 ruling promptly and request an expedited hearing. Cigna said it would review the decision and evaluate its options. Anthem has a financial incentive to appeal given that under the terms of the merger proposal, Anthem agreed to pay Cigna $1.85 billion if the deal fell apart. Continue reading
Medicare Advantage 2016 Spotlight: Enrollment Market Update, by Gretchen Jacobson, Giselle Casillas, Anthony Damico, Tricia Neuman and Marsha Gold for the Kaiser Family Foundation, May 11, 2016.
U.S. District Judge John D. Bates on Monday sided with the Department of Justice to block the merger of Aetna and Humana. The ruling is being called a victory for members of Medicare Advantage (MA) plans, since Aetna and Humana — two of the nation’s largest health insurers would, as a combined company, have owned the biggest share of the Medicare Advantage market, The Wall Street Journal reported.
For journalists covering health insurance in their cities and states, there’s a story on how the merger would have affected competition in states where the two companies compete. Continue reading
Research from the Health Care Pricing Project shows that when hospitals have a monopoly in a market, prices are 15.3 percent higher than prices in hospitals where there are four or more hospitals, even after controlling for costs in those markets.
No doubt there’ll be lots of talk about hospital consolidations at AHCJ’s upcoming Health Journalism 16 conference in Cleveland. At one session in particular, Zack Cooper, Ph.D., an assistant professor of health policy and of economics at Yale University, will talk about the research he and his colleagues published last year on how hospital consolidations affect what hospitals charge consumers and insurers. Continue reading
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Hospitals have been merging and acquiring physician practices at a breakneck pace. They say it’s what they have to do to save money on big-ticket items like health care information technology, and to move toward the coordinated care models encouraged by the Affordable Care Act.
But insurers, state attorneys general and federal antitrust enforcers have a different take. They say consolidation can give hospitals monopoly power to drive up prices and hurt consumers. Continue reading
One big story health care journalists can pursue this year is whether federal and state regulators will approve the three pending health insurance company mergers. If they approve the proposals by Anthem to acquire Cigna, Aetna to buy Humana and Centene to purchase Health Net, we’ll cover what concessions regulators will require and how the mergers will affect health insurance markets. Continue reading
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