Monday, July 25, 2016

DOJ Files Lawsuit to Block Health Insurance Merger

The U.S. Department of Justice (DOJ), along with attorney generals from several states, have filed two lawsuits in the U.S. District Court for the District of Columbia, to attempt to block two mega healthcare insurance mergers. The lawsuits attempt to halt Anthem’s proposed acquisition of Cigna and Aetna’s proposed acquisition of Humana. The complaints allege that the two mergers – valued at $54 billion and $37 billion respectively – would harm seniors, working families and individuals, employers and doctors and other healthcare providers by:
  • limiting price completion, 
  •  reducing benefits, 
  • decreasing incentives to provide innovative wellness programs and 
  • lowering the quality of care. 
“Competitive insurance markets are essential to providing Americans the affordable and high-quality healthcare they deserve….These mergers would restrict competition for health insurance products sold in markets across the country and would give tremendous power over the nation’s health insurance industry to just three large companies. Our actions seeks to preserve competition that keeps premiums down and drives insurers to collaborate with doctors and hospitals to provide better healthcare for all Americans,” said The DOJ, Attorney General, Loretta Lynch.

See DOJ announcement.

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