The AMA urges the Department of Justice to block the pending Anthem/Cigna and Aetna/Humana mergers, claiming the mergers would stifle competition.
The Justice Department, the Federal Trade Commission and state regulators are permitted to conduct antitrust reviews on the mergers, and Congress has conducted hearings on the proposed deals. Similar to the AMA, the American Hospital Association opposes the deals.
In a 17-page letter to William Baer, the assistant attorney general for the Department of Justice Antitrust Division, James Madara, CEO of AMA, wrote, “The AMA has concluded that these mergers are likely to impair access, affordability and innovation in the sell-side market for health insurance, and, on the buy side, will deprive physicians of the ability to negotiate competitive health insurer contract terms in markets around the country. The result would be detrimental to consumers.”
In response to these criticisms, the payers argue the mergers are pertinent to their survival and financial future, and also comment the mergers will benefit consumers. If the mergers are approved, the firms say they can reduce expenses and the payers can implement programs aimed at lowering cost.
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