The Justice Department Doesn’t Want Two Giant Healthcare Companies

Do you?

Hat tip to theSkimm for warning me that four of our five biggest healthcare companies are trying to become two of our three biggest healthcare companies.

Here’s what’s going on: Anthem is trying to buy up Cigna for $48 billion, Aetna is proposing a $38 billion date with Humana, and the Justice Department is getting ready to sue to prevent this from happening.

Justice Dept. Will Seek to Block 2 Health Insurance Mergers

The proposed mergers would greatly reshape the health insurance landscape. The combination of Anthem with Cigna would create a powerful presence in the market to offer insurance administration to large employers. And Aetna’s combination with Humana threatened to further consolidate the market for private Medicare plans.

Of the five largest insurers, only UnitedHealth Group, the most diversified of the national plans, remained out of last year’s merger frenzy.

The NYT notes that if the Justice Department wins and these mergers don’t take place, both Anthem and Aetna have to pay “breakup fees” to Cigna and Humana. $1.85 billion and $1 billion, respectively.

So, to all of you: do you want two giant healthcare companies (and a third smaller healthcare company)? Are there advantages to this, or does it seem like the kind of thing that will just raise costs for everyone?

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