Insurance mergers challenged
Washington — Sen. Richard Blumenthal, D-Conn., and six other Democrats on the Judiciary Committee asked the Justice Department on Wednesday to block two proposed mergers involving Connecticut health insurers, Aetna-Humana and Anthem-Cigna.
“We are deeply concerned by the detrimental impact that both of these mergers would have on premium prices, jobs and health care costs for consumers and businesses,” the senators said in a joint statement.
The Justice Department’s Antitrust Division is reviewing the mergers.
In a letter to Renata Hesse, the head of the DOJ’s Antitrust Division, the lawmakers said history shows mergers cause job losses and the trend in health insurer consolidation has resulted in higher premiums for consumers.
Sens. Al Franken, D-Minn.; Elizabeth Warren, D-Mass.; Sherrod Brown, D-Ohio; Edward Markey, D-Mass.; Dianne Feinstein, D-Calif., and Mazie Hirono, D-Hawaii, joined Blumenthal in signing the letter.
Aetna’s response to the congressional opposition to the deals was measured.
“We believe a combined company is in the best interest of consumers, and we continue to cooperate with the Department of Justice on its thorough review of the transaction,” said Aetna spokesman T.J. Crawford.
The Connecticut Insurance Department, which is also reviewing the Anthem-Cigna merger, had no comment.
The mergers would shrink the nation's five biggest health insurers to three. The insurers say there will still be plenty of competition, and consolidation would bring about efficiencies that result in lower premiums and better health care delivery. But Blumenthal and his Democratic allies on this issue don’t think so.
“These mega-mergers are job killers. They threaten jobs, hike prices, lessen choices, and lower health care quality,” Blumenthal said. “Combining five competitors into three epitomizes the type of anti-consumer deal that the law forbids. I strongly support steps to help these insurers succeed and expand here in Connecticut, so they can do more business and more hiring here. We need them — as thriving, independent competitors."
He also said the Anthem-Cigna merger will make some of Connecticut’s health insurance markets almost 70 percent more concentrated than they currently are — leaving them more than three times above the level DOJ considers “highly concentrated.”
Blumenthal also said the Aetna-Humana merger poses a “real threat to jobs in the state.”
He said while Aetna has said Humana’s Kentucky workers’ jobs are safe in light of the proposed merger, they have repeatedly refused to offer the same assurances for workers in Connecticut.
Ana Radelat is a reporter for The Connecticut Mirror (www.ctmirror.org). Copyright 2016 © The Connecticut Mirror.
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