Democratic presidential hopeful Hillary Clinton yesterday called for greater scrutiny of major health insurance mergers, on the heels of Anthem's takeover of Cigna and the proposed acquisition of Humana by Aetna.
The two blockbuster deals comprise nearly $100 billion and could potential undermine competition in the health insurance space, thus going against one of the major tenets of the Affordable Care Act, Clinton said.
“These mergers should be scrutinized very closely with an eye to preventing the undue concentration that they appear to create,” she said in a statement. “I am very skeptical of the claim that consumers will benefit from them because the evidence from careful studies shows that too often the companies end up pocketing profits rather than passing savings to consumers.”
The former Secretary of State further vowed to increas regulatory scrutiny if elected president.
"I would strengthen the antitrust enforcement arms of the Department of Justice and the Federal Trade Commission and appoint aggressive regulators to take on troubling concentration wherever it occurs in the health care industry," she said.
This is not the first time Clinton has brought up the increased M&A activity in the health insurance industry during her campaign. Last month, she promised supporters she would “vigorously enforce antitrust laws to scrutinize mergers and ensure they do not harm consumers.”
The transactions have been roundly criticized by several government officials and health industry trade associations, though the CEOs of both companies have defended their actions before a panel of lawmakers as acts that would benefit consumers, potentially by lowering costs.
Other industry members, including the influential trade group America's Health Insurance Plans, have also supported the transactions.
"If the goal is to make health care more affordable and to provide greater choices for consumers, then policymakers should focus on addressing the real cost challenges facing patients -- the soaring prices of prescription drugs and medical services -- that drive up the cost of coverage and out-of-pocket costs for millions across the country," said AHIP Clare Krusing.
