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Centene Corp's proposed acquisition of Health Net came after the latter health insurer's board had discussed the possibility of a merger as far back as 2013, a recent Securities & Exchange Commission filing reveals.
Though some have expressed concerns about the anticompetitive effects of the mergers among the nation's largest health insurers, one major benefit of consolidation is that it's likely to accelerate the industry's use of effective care management programs, according to an opinion piece from CNBC.
It's no secret that the health insurance industry has been subject to a flurry of deal-making in recent months, but a new Securities and Exchange Commission filing by merging insurers Aetna and Humana offers a unique peek into the behind-the-scenes negotiating that ultimately would reshape the industry.
In addition to the scrutiny it will face from federal and state regulators, another major hurdle involved in the Anthem-Cigna merger is how the deal will interact with Anthem's membership in the Blue Cross Blue Shield Association.
Having already spoken out against the proposed mergers in the health insurance industry, the American Hospital Association has now ratcheted up its scrutiny of one specific mega-deal in a letter to the Department of Justice.
Aetna's decision to merge with Humana is not only driven by the smaller company's dominance in Medicare Advantage (MA) business, but also its strong understanding of the consumer-driven trend that has come to dominate the health insurance industry, Aetna CEO Mark Bertolini tells Bloomberg.
The recent rush of consolidation in the health insurance industry has triggered a host of analyses about what the trend means for healthcare providers, employers and consumers. But I've seen less written about the effect these mega-mergers will have on health insurance companies--the ones occupying the industry that stands to be fundamentally disrupted.
Despite growing speculation about the regulatory hurdles that the two major health insurance mergers will face, Cigna CEO David Cordani tells CNBC that there are several reasons his company and Anthem are confident their deal will win approval.
If mergers amid four of the nation's largest health insurers pan out, it will be in large part due to the work of two men—Anthem CEO Joseph Swedish and Aetna CEO Mark Bertolini. And both face formidable challenges during every step of the consolidation process.
In addition to adding to the insurance industry's wave of consolidation, the news of Anthem's deal to acquire Cigna also reinforced how much value the largest health insurers place in the pharmacy benefit management business.
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