Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Clinton has 'serious concerns' about Aetna-Humana, Anthem-Cigna mergers

Published 10/21/2015, 01:58 PM
© Reuters. U.S. Democratic presidential candidate Hillary Clinton speaks at a campaign "Meet and Greet" in Nashua
CI
-
ELV
-
AET
-
HUM
-

By Amanda Becker

WASHINGTON (Reuters) - Democratic presidential candidate Hillary Clinton has "serious concerns" about health insurer Aetna's plan to acquire Humana and Anthem's proposal to buy Cigna, saying the multi-billion-dollar deals should be closely reviewed by U.S. regulators.

Stocks of the health insurers fell at least over 5 percent after Clinton said she was "very skeptical" the mergers would be good for consumers.

A $37 billion plan for Aetna Inc (N:AET) to acquire smaller rival Humana Inc (N:HUM) approved by the shareholders of both companies this week would make Aetna the largest provider of Medicare Advantage plans for the elderly.

Anthem Inc (N:ANTM) agreed over the summer to acquire Cigna Corp (N:CI) in a $47 billion deal that would make it the largest U.S. health insurer by membership.

Clinton said she was "very skeptical" the mergers would be good for consumers.

Both deals, which would reduce the number of nationwide for-profit health insurers from five to three, are being closely reviewed by the U.S. Department of Justice and state insurance regulators, and have been the subject of hearings in the U.S. Congress.

"As we see more consolidation in health care, among both providers and insurers, I'm worried that the balance of power is moving too far away from consumers," Clinton said in a statement.

"These mergers should be scrutinized very closely with an eye to preventing the undue concentration that they appear to create," Clinton added.

Clinton, the frontrunner for the Democratic nomination, has over the past month detailed how she would reduce healthcare costs for consumers if she wins the White House in November 2016.

Cigna stock fell more than 8 percent, and Humana shares tumbled over 7 percent. Aetna's stock dropped over 6 percent and Anthem shares fell by over 5 percent.

Clinton has taken aim at the pharmaceutical industry for what she calls "price gouging" and said she would cap out-of-pocket prescription costs at $250 per month.

Insurers say mergers will help them compete in the market as the government tries to rein in healthcare spending following the implementation of President Barack Obama's signature healthcare law, the Affordable Care Act.

Anthem is "engaged in a constructive and transparent dialog" with regulators about how the Cigna transaction would lead affordable care and robust competition, spokeswoman Jill Becher said.

© Reuters. U.S. Democratic presidential candidate Hillary Clinton speaks at a campaign "Meet and Greet" in Nashua

"Aetna is focused on evolving the health care industry to a new model," Aetna spokeswoman Cynthia Michener wrote in a statement, saying the Humana deal would create "positive change" in the marketplace.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.