US: DOJ Ready to scrutinize health insurer mergers

The Wall Street Journal reported that the DOJ is fixing to take a close look at any deal that comes down the pike amid worries that consolidation among the big players will squash competition.

According to media reports last week, a deal between Aetna and Humana could take place as soon as today.

There is a five-way grapple underway. Besides Aetna bidding on Humana, Anthem is chasing after Cigna, which has reportedly also sized up Humana. And UnitedHealth has reportedly approached Aetna.

Many of the mergers under discussion have the potential to raise antitrust concerns, a senior Justice Department official said, adding that health insurers considering such deals should do a careful antitrust risk-assessment of the transactions.

Antitrust enforcers have had initial discussions about how they would approach any insurance tie-ups, and they are preparing for the possibility they could face multiple deals simultaneously, this official said.

If there were a wave of mergers at once, the department would look at the deals collectively, rather than each one in isolation. Enforcers would try to determine what effect the deals could have on the marketplace, and pursue questions about whether they would benefit consumers, the official said.

Full content: The Wall Street Journal

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