The Center for American Progress recently released an analysis of the proposed merger between Aetna Inc. and Humana Inc. and its effects on the Medicare Advantage market. The analysis—of individual-only plans—found that current competition between Aetna and Humana in the Medicare Advantage market keeps individual plan premiums lower in counties where both providers offer plans than in counties where they do not compete.* Therefore, if the merger goes through and this competition disappears, consequences most likely would include higher premiums for seniors, increased consolidation in already highly concentrated insurance markets, and higher costs for the Medicare program and taxpayers.
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