Here's one figure to focus on when thinking about Aetna's extortion of the federal government for the Justice Department (DOJ) decision to fight its merger with Humana: $1 billion. That's the amount Aetna will owe Humana if the merger falls through. One billion dollars of health insurance premiums collected from businesses and individuals as part of Aetna's drive to become a bigger near-monopoly and maximize profits. The impact on Americans' access to health be damned.
There's a lot to be skeptical about in Aetna's decision to abandon Affordable Care Act (ACA) markets in 11 of the 15 states it operates, three weeks after the DOJ action. But the bottom line is crystal clear: The ACA cannot rely on the private insurance industry for its operations. Which is why Democratic nominee Hillary Clinton is now calling for a national public option as a key part of her plan to strengthen the ACA.
On July 5, Aetna CEO Mark Bertolini threatenedto "leave the public exchange business entirely" if DOJ opposed the merger with Humna. Two weeks later, DOJ stood up against Aetna's extortion and sued to block the merger, along with another giant health insurance merger between Anthem and Cigna. Almost every health insurance market in the country is already highly concentrated by DOJ standards and concentration has only increased since the ACA's passage. These two mega-mergers would have had cemented oligopoly power in private health insurance.
Read Full Article »