Hillary Clinton says she doesn't want to see more consolidation in the health insurance industry, which is already dominated by a handful of corporate giants.
In a statement on Wednesday, the frontrunner for the Democratic presidential nomination expressed skepticism of the proposed acquisitions of Cigna by Anthem and of Humana by Aetna.
Shareholders of the latter two companies voted to approve the merger on Monday, but both multi-billion dollar deals still must be approved by federal regulators, a process that might not be complete until next year.
“These mergers should be scrutinized very closely with an eye to preventing the undue concentration that they appear to create,” she said. “The evidence from careful studies shows that too often the companies end up pocketing profits rather than passing savings to consumers.”
Insurance companies have suggested that the mergers will benefit consumers by bolstering their ability to negotiate lower prices from providers.
Obviously, that's not something that excites providers, who are represented by powerful interest groups, such as the American Medical Association and the American Hospital Association. But consolidation among providers is a significant issue as well. A recent study found that areas in which hospitals have bought doctor practices have experienced higher cost increases.
On the sidelines, for now, are employers that are seeking to reduce health costs. In July, the National Business Group on Health stated that it was watching the mergers with caution, hoping that the insurance industry's promise of savings comes true.
And Republicans blame the mergers on the Patient Protection and Affordable Care Act, arguing that the taxes and regulations imposed by the health care overhaul can only be braved by the biggest insurers.
“The Affordable Care Act put into place incentives for insurers to increase in size so that they can better manage costs and the heavy regulatory burden and operational constraints imposed by the law," Rep. Bob Goodlatte, the chairman of the House Judiciary Committee, said in a statement provided to the National Journal.
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