Calif. Insurance Regulator Advises Feds To Block Aetna-Humana Mega-Merger
The recommendation comes a week after California Insurance Commissioner Dave Jones also weighed in on the Anthem-Cigna deal. While he does not have the authority to block either merger, his opinion could influence the Department of Justice's decision.
California Insurance Commissioner Urges DOJ To Block Aetna-Humana Deal
California's insurance commissioner on Thursday urged national antitrust regulators to block health insurer Aetna Inc's proposed $34 billion acquisition of Humana Inc. David Jones, whose state Department of Insurance does not have authority to block the deal, said the acquisition would be anti-competitive in California and nationwide and contribute to higher prices for insurance. (6/23)
California Insurance Commissioner Weighs In Against Aetna-Humana Deal
The official opinion of Dave Jones came just three days after California’s other health insurance regulator, the Department of Managed Care, approved the planned transaction. Just a week ago, Jones urged the federal government to block another mega-merger, Anthem Inc.’s $54 billion offer for Cigna Corp, also on competitive grounds. Jones said an Aetna-Humana tie-up would reduce competition in commercial health insurance markets that are already highly concentrated. “The Aetna and Humana merger has anticompetitive impacts that will likely result in increased prices, decreased availability of health insurance products, and decreased quality and access to healthcare,” Jones said. (Ibarra, 6/23)