Tuesday, September 29, 2015

Mergers Would Exceed Antitrust Guidelines in 17 States


The American Medical Association recently published an analysis on implications of the potential Anthem-Cigna and Aetna-Humana mergers. Here are some key findings from the report:

·         The mergers would exceed antitrust guidelines in 97 metropolitan areas in 17 states.

·         A significant absence of health insurer competition was found in 70% of metropolitan areas studied.

·         In almost 40% of metropolitan areas, a single health insurer had at least a 50% share of the market.

·         Both mergers would diminish competition in up to 154 metropolitan areas within 23 states.

·         46 states had two health insurers with at least a 50% share of the commercial health insurance market.

·         Alabama has the least competitive insurance market and Louisiana saw the biggest drop in competition.

Source: AMA, September 8, 2015

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