Companies have 30 days to respond to order
JEFFERSON CITY, Mo. – The Missouri Department of Insurance ruled in an order issued Tuesday that a proposed merger between health insurance companies Aetna and Humana was anticompetitive.
The order gave the companies 30 days to submit a plan to “remedy the anticompetitive impact of the merger,” or they would not be allowed to operate in Missouri counties where the market was found lacking.
The news caused celebration in health consumer advocacy circles including the Missouri Health Advocacy Alliance.
“We applaud Director Huff for looking out for consumers today,” said Lhakpa Tsering, executive director of the alliance. “With this ruling, the Department took a brave stand to make sure the Missouri insurance market remains competitive.”
The acquisition of Louisville-based Humana by Connecticut’s Aetna was announced last July 3.
In a statement, Aetna anticipated no harm to the merger at the federal level.
“The Missouri order does not impede the DOJ approval process,” the company said. “We’re disappointed but expect to have a constructive dialogue with the state to address their concerns.”
The order listed several of those concerns, but the main issues appear to be with how some counties will be left with an anticompetitive market for comprehensive individual insurance, comprehensive small group insurance and group medicare advantage insurance.
The order would prohibit the combined company from operating within 65 Missouri counties, including Boone, Clay, Greene, Jackson, St. Charles, St. Louis City and St. Louis County.
Several local healthcare companies and groups submitted letters of support to the Department of Insurance’s hearing officer, Mary Erickson for last week’s hearing on the merger.
“Missouri Health+ believes that consolidation in the healthcare sector is inevitable, and designed intelligently, can lead to better value to providers, patients and society as a whole,” wrote Daniel O’Neill, CEO of Missouri Health+. He also wrote that the merger would allow their clinics access to Humana, something they did not have before.
Other entities to submit letters of support included the YMCA of Greater Kansas City, Visor Incorporated, the Missouri Primary Care Association, Encompass Medical Group and Freeman Health System.
