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Wednesday, Dec 21 2016

Full Issue

Many States Would See Higher Prices, Lower Quality Care Under Anthem-Cigna Merger, Witness Says

“If you have a highly concentrated market and you have a merger, you go from bad to worse,” Northwestern University health care economics professor David Dranove said at an antitrust hearing. Meanwhile, Aetna and Humana wrap up the defense of their $37 billion acquisition plan in a separate case.

Connecticut was among the states and cities that would be hurt by the merger of Anthem and Cigna, a government witness in an antitrust trial said Tuesday. David Dranove, a Northwestern University health care economics professor, said the merger would result in higher prices and poorer care in many metropolitan areas and in certain states, including Connecticut, that already have few choices of health insurers. (Radelat, 12/20)

Aetna and Humana on Tuesday closed a weeklong defense of their $37 billion merger, accusing the Justice Department of exaggerating the deal's impact on competition among private Medicare plans. In a hearing on the deal, the health insurers over the last two days relied on testimony from former Clinton economic adviser Jonathan Orszag to counter the DOJ’s antitrust claims. Orszag, who served as the companies' primary expert witness, testified that the DOJ's evaluation of the merger is deeply flawed and isn't reflective of the health insurance market. (Cancryn, 12/20)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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