US: California insurance chief urges Aetna-Humana deal blocked

David Jones, whose state Department of Insurance does not have authority to block the deal, said the acquisition would be anti-competitive in California and nationwide and contribute to higher prices for insurance.

Jones’ comments came just days after California’s other insurance regulator said it had approved the Aetna-Humana deal with conditions, including that Aetna keep down premium increases and invest $50 million in communities.

“We received approval earlier this week from the California Department of Managed Health Care, the only regulatory agency in the state with official oversight of our acquisition,” Aetna spokesman T.J. Crawford said.

Jones a week ago also called for the U.S. Justice Department to stand against Anthem Inc’s proposed acquisition of Cigna Corp. He said that one of his concerns is the shrinking number of commercial insurers available to enter new markets.

“If Humana disappears into this merger, it’s one less company that has the realistic possibility of entering the market,” Jones said.

He said the agreement reached between Aetna and the California Department of Managed Health Care did not address antitrust concerns detailed in a 24-page letter his insurance department sent to the U.S. Department of Justice.

Full Content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.