By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    improving patient experience
    6 Ways to Improve Patient Satisfaction Within Hospitals
    December 1, 2021
    degree for healthcare job
    What Are The Health Benefits Of Having A Degree?
    March 9, 2022
    custom software development is changing healthcare
    Digital Customer Journey Mapping and its Importance for Healthcare
    July 21, 2022
    Latest News
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    ACO infographic
    A Closer Look at Accountable Care Organizations [INFOGRAPHIC]
    June 5, 2014
    Medical Residents Get Their Own Social Network
    December 19, 2012
    FDA Social Media Guidance: Hangout on Air
    July 29, 2014
    Latest News
    Top HIPAA-Compliant Messaging Apps for Healthcare Teams
    June 25, 2025
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 2025
    Strengthening Healthcare Systems Through Clinical and Administrative Career Development
    June 13, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Head of the DOJ’s Antitrust Division Raises Concerns About Two Proposed Mega-Mergers Between Leading Health Insurers
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Global Healthcare > Head of the DOJ’s Antitrust Division Raises Concerns About Two Proposed Mega-Mergers Between Leading Health Insurers
eHealthGlobal HealthcareHealth ReformHome HealthHospital AdministrationMedical EducationMedical EthicsMedical RecordsPolicy & LawPublic Health

Head of the DOJ’s Antitrust Division Raises Concerns About Two Proposed Mega-Mergers Between Leading Health Insurers

Jennifer Warren
Last updated: October 29, 2018 8:06 pm
Jennifer Warren
Share
5 Min Read
SHARE

Assistant Attorney General, Bill Baer, head of the Department of Justice’s (DOJ) Antitrust Division, recently spoke at a Yale Law School conference about competition in the health care industry. While not singling out any specific companies, Baer seemed to repeatedly reference two proposed “mega-mergers” that are currently in the balance. The anticipated mergers between four leading health insurers, namely, Aetna Inc. and Humana Inc., and Anthem Inc.

Assistant Attorney General, Bill Baer, head of the Department of Justice’s (DOJ) Antitrust Division, recently spoke at a Yale Law School conference about competition in the health care industry. While not singling out any specific companies, Baer seemed to repeatedly reference two proposed “mega-mergers” that are currently in the balance. The anticipated mergers between four leading health insurers, namely, Aetna Inc. and Humana Inc., and Anthem Inc. and Cigna Corp., are causing quite a stir among the American Medical Association (AMA) and antitrust enforcers like Baer. They view these mergers as being detrimental to competition and a possible violation of antitrust laws and principles.

The AMA Demands DOJ Block the Mergers.

The AMA made its anti-consolidation position known to the DOJ by way of letter in the middle of the DOJ’s Antitrust Division’s review of the two mega-mergers between the health insurers. The AMA zealously voiced its concerns regarding the mergers pointing out the likelihood of lower rates for physicians which in turn will result in the reduction of the quality and quantity of services provided to patients. The AMA further asserted that the mergers will reduce competition and maintained skepticism that the insurance companies would pass along savings resulting from stronger negotiation powers.

More Read

5 Common Misconceptions About Naturopathic Medicine
Contaminated Water and Disease:Are We Safe?
Should Sedentary Lifestyle Be Considered a Medical Condition?
Healthcare Data Breaches: What Are the Risks?
Is Medicaid Real Insurance?

The AMA’s statements largely corresponded with those of the American Hospital Association (AHA), also in opposition of the mergers. However, one proponent of the mergers, a trade group known as America’s Health Insurance Plans (AHIP), disparaged the AMA letter calling it no more than a “17-page press release.” AHIP quipped that the letter contained inaccurate data and would be of little concern to the DOJ in its review of the consolidation of the pair of health insurance companies.

To read the full letter from the AMA to the DOJ, click here.

What is the DOJ’s Antitrust Division’s Stance on the Issue?

With the review still underway and Attorney General Baer’s non-specific address of the issue, it is hard to make an assumption one way or another about the DOJ’s current position on the pending mega-mergers. However, Baer’s comments at the Yale Law School conference did seem to raise some red flags for the leading insurers in the midst of their proposed consolidation. While not referencing the health insurers, Baer did cast criticism on the idea of health insurers merging as a means to better negotiate rates with doctors and hospitals.

Baer remarked, “Consumers do not benefit when sellers-or buyers-merge simply to gain bargaining leverage.” He further opined, “Consumers benefit when there is entry, expansion, innovation and competition.” Baer also voiced his concerns in regards to the possible impact these types of mergers could have on Affordable Care Act (ACA) exchanges. Aetna Inc., Humana Inc., Anthem Inc. and Cigna Corp. all participate to some degree in the exchanges.

While not offering the audience a definitive position on the issue, Baer did make clear that market pressure by the ACA alone is not sufficient to justify consolidation. Instead the DOJ applies a multilayered test to the evaluation of mergers and acquisitions. That test takes into account the impact of increased bargaining power and competition on local, regional and national levels (among other factors) which are apparent elements with these mergers. Not all transactions will satisfy this test. It still remains to be seen if the proffered mega-mergers will meet the precisely gauged standards to receive the passing grade.

To read the full press release on the conference issued by the DOJ, click here.

Share This Article
Facebook Copy Link Print
Share
By Jennifer Warren
This is Jennifer Warren, staff writer at GoodFirms – a review and research platform for top ecommerce development companies, blockchain development companies among many others. A bookworm at heart, I have successfully guest blogged for top sites such as Crazyegg, Semrush, Searchenginepeople, Sitepronews, Volusion.com, Socialnomics, jeffbullas, mediapost among others.

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

women dental care
What Is a Smile Makeover and How Much Does It Cost?
Dental health
June 30, 2025
HIPAA-Compliant Messaging Apps
Top HIPAA-Compliant Messaging Apps for Healthcare Teams
Global Healthcare Policy & Law Technology
June 25, 2025
recovering from injury
Rebuilding After Injury: Path to Physical and Emotional Recovery
News
June 22, 2025
scientist using microscope
When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
Global Healthcare
June 18, 2025

You Might also Like

BusinessSocial Media

Top 4 Branding Ideas For Yoga Teachers

July 31, 2017
#OccupyHealthcare a jacket for Ben Miller
Social Media

#OccupyHealthcare

June 18, 2012

Cancer Drugs: Why the High and Rising Prices?

April 10, 2015
Policy & Law

Hypocrisy Is Handsome

May 3, 2012
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?