U.S. Senators Richard Blumenthal (D-CT), Al Franken (D-MN), Elizabeth Warren (D-MA), Sherrod Brown (D-OH), Edward J. Markey (D-MA), Dianne Feinstein (D-CA), and Mazie K. Hirono (D-HI) have called on the Department of Justice (“DOJ”) to block two proposed health insurer mergers currently undergoing review. The senators told the DOJ that they are concerned that the proposed Aetna-Humana and Anthem-Cigna mergers could threaten jobs, increase premiums, and decrease access to quality health care.
The senators asserted, among other things, that both proposed mergers, or either standing alone, would substantially harm competition; the proposed Aetna-Humana merger would particularly harm competition in the Medicare Advantage market; the proposed Anthem-Cigna merger would drastically reduce competition across both Blue and non-Blue markets; and divestiture would not be an effective remedy for either merger.
“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. In addition to the antitrust legal standard, a critical point to note is the harmful impact these mergers could have on job cuts, wage stagnation, higher health care prices, and the nation's overall economy,” the senators wrote.
“History shows that mergers can frequently cause job losses as the firms eliminate supposedly redundant positions and consolidate operations. Economists are also increasingly warning that excess monopoly power concentrates profits and power in fewer hands at the expense of wage and job growth. Families facing higher premiums may similarly be harder pressed to spend household income in their local economies. For all of the above reasons, we urge you to challenge the proposed mergers of Aetna-Humana and Anthem-Cigna,” the senators added.
Learn more: Senators' Letter.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].