HHS: Why the payer marketplace needs competition; will the agency block the payer megamergers? 5 takeaways

In a recent brief interview in Iowa, Health and Human Services Secretary Sylvia Mathews Burwell addressed why the healthcare industry needs competition to lower the financial impact on patients, according to Bloomberg.

Here are five takeaways:

1. Ms. Burwell did not delve into HHS' views on Aetna's bid for Humana or the Anthem/Cigna merger. Aetna and Humana presently have 90 percent of the necessary state approvals for the merger, and are awaiting federal approval.

2. Last month, a Justice Department official told a group of antitrust lawyers the payer mergers would result in "substantial consolidation," and the lawyers therefore should put forth efforts to block the mergers.

3. While the Justice Department will make the final decision regarding the mergers, HHS can provide input about the pending deals. Secretary Burwell did not comment on discussions between HHS and the Justice Department, although she did say, "We support as asked."

4.  She also empathized how the Affordable Care Act has significantly improved care for Medicare patients. The health law has faced major scrutiny due to many of its co-ops closing.

5. While 11 co-ops are technically still operating, four co-ops in Oregon, Ohio, Connecticut and Illinois will soon shut down due to lack of funds. State regulators in Oregon and Connecticut gave orders to close the states' co-ops earlier this month.

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