Why the Aetna/Humana & Anthem/Cigna mergers are bad for Georgia

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Kimberly Ramseur

678.303.9274

kramseur@mag.org

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Action Alert: MAG is encouraging Georgians to send an email to mergercomments@oci.ga.gov to urge Georgia’s Division of Insurance to oppose the Aetna/Humana and Anthem/Cigna mergers.

MAG believes that the pending Aetna/Humana and Anthem/Cigna mergers could have disastrous results for patients and physicians in Georgia.

These transactions would reduce competition and place physicians and their patients at an even greater disadvantage as a shrinking number of health insurance companies seize increasingly-dominant positions in the marketplace.

If the Aetna/Humana and Anthem/Cigna mergers are allowed to go through, the combined entities will control nearly 90 percent of the individual health insurance market in Georgia; a few insurers will be able to institute policies that will exacerbate the physician shortage and undermine the economic viability of Georgia’s health care system – especially in rural areas where hospitals and medical practices are struggling to keep their doors open.

More than 30 percent of the physicians in Georgia who participated in a survey that MAG conducted in the last several months said that they believe that the Aetna/Humana merger would threaten the long-term viability of their practice.

MAG has urged the U.S. Department of Justice to assess these mergers for antitrust violations in a full and comprehensive way.

The Georgia Department of Insurance (DOI) has also expressed concerns that the Aetna/Humana merger would violate Georgia’s standards for competition. Specifically, DOI believes that the Aetna/Humana merger may violate Georgia’s competitive standard in the individual, small group, and Medicare Title XVIII markets while raising concerns of substantially reduced competition in the large group market.

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