State Regulators Could Help Decide Whether Insurer Mergers Move Forward, Experts Say
While focus has been on the Department of Justice's role in deciding whether to approve proposed mergers between some of the nation's largest health insurers, state regulators could play a key role in whether the mergers are permitted. In July, Anthem announced that it agreed to acquire Cigna for $48.4 billion. Also in July, Aetna announced it reached a $37 billion deal to purchase Humana. Experts say the companies will not be permitted to merge in states that reject the proposed deals. If enough states reject the mergers, or if the mergers are rejected in just a few states with large populations, the companies could drop the deals because of their reduced financial strength.
- "States Hold Key Role in Big Insurer Mergers" (Schencker, Modern Healthcare, 12/12).