collected by :John Locas
Medicare Advantage plans are Medicare health plans offered by private insurers.
“Health plans have been and will continue to be acquisitive,” Mendelson said.
A U.S. federal judge blocked Aetna’s proposed $34 billion merger with rival Humana, saying it was illegal under antitrust law.
A federal judge has prohibited the merger of two health insurance giants, Aetna and Humana, upholding the Justice Department’s decision that the $37 billion deal would hurt competition and raise prices for consumers.
Mega-mergers like the proposed consolidation of Aetna and Humana raise prices, lower health care quality – and kill jobs,” Blumenthal said.
Judge blocks Aetna-Humana merger deal on antitrust grounds
U.S. District Judge John D. Bates blocked the proposed merger deal of health care giants Aetna and Humana on Monday, saying that such a merger would violate antitrust law by significantly reducing competition in the marketplace.
The insurers said that while lots of older, sicker patients had signed up for health insurance, younger, healthier customers had stayed away.
That meant that health insurance premiums the insurers collected were not enough to pay for the care that the new patients required.
Medicare Advantage, which provides the same kind of insurance, but is provided by private insurance companies such as Aetna and Humana that are approved by Medicare.
For the session, Humana climbed 2.2 percent, to close at $205.02; Aetna closed down 2.7 percent, to $119.20.
Judge blocks Aetna-Humana health insurance merger on antitrust grounds
Both companies’ stock prices fell immediately after Bates’ ruling but Humana’s shares then rallied; they closed up 2.2% at $205.02 a share.
The proposed $34-billion merger of Aetna Inc. and Humana Inc. to form one of the nation’s largest health insurers was blocked Monday by a federal judge on antitrust grounds.
The Justice Department also sued to block that deal for antitrust reasons; the case is being heard by a different judge.
The deal calls for Aetna to acquire Humana for cash and stock valued at about $230 per Humana share.
His decision raises questions about whether another huge health-insurance merger, Anthem Inc.’s proposed $48-billion purchase of Cigna Corp., might be in peril as well.