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
    An Expert’s Guide To Building and Improving Endurance
    June 30, 2022
    medical assistants
    What Do Medical Assistants Do On a Day to Day Basis?
    April 5, 2022
    superfoods to help with prostate health
    10 Healthy Foods That Can Help Protect Your Prostate
    August 29, 2022
    Latest News
    Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
    July 20, 2025
    How Probate Planning Shapes the Future of Your Estate and Family Care
    July 17, 2025
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 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
    How Powerful Patients Save the System Money
    November 11, 2015
    How Financial Barriers are Slowing Down Telehealth Adoption
    September 26, 2017
    No Resource Constraints in Dialysis: a Blessing and a Curse
    May 4, 2011
    Latest News
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
    How Health Choices and Legal Actions Intersect After an Injury
    July 17, 2025
    How communities and healthcare providers can address slip and fall injuries with legal awareness
    July 17, 2025
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 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
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

Looking Ahead to an Unpredictable Future
CMS Delays 2014 Final Rule
Digital Patient Privacy Loss in EHRs and Other Health IT Systems
Person-Centered HealthCare: Using Medical Education to Drive Adoption of High-Value Care
Medical Professionals: Protect the Online Reputation of Your Practice

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

holistic dental
Holistic Dentist Services Are Natural and Safe
Dental health Specialties
July 28, 2025
botox certification
Help Improve People’s Skin Health Via Botox Certification
Skin Specialties
July 22, 2025
Telemedicine Apps
Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
Health
July 20, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
How IT and Marketing Teams Can Collaborate to Protect Patient Trust
Global Healthcare Policy & Law
July 17, 2025

You Might also Like

Targeted Local Medical Marketing, Local Search Engine Marketing, Online Healthcare Marketing
BusinesseHealth

Targeted Local Medical Marketing: Quickly Build Your Online Presence

April 28, 2014
ACA Delays
Health ReformPolicy & LawPublic Health

Top 8 ACA Delays: Blatantly Illegal or Temporary Courses of Action?

July 7, 2014
Health carePolicy & LawPublic HealthSpecialties

Nixed NHS Procedures Spark Concern for Varicose Vein Patients

July 18, 2018
Home HealthWellness

The 7 Health Benefits of Yoni Eggs

June 18, 2019
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?