Justice department files lawsuits to block health insurance mergers

• Anthem trying to buy Cigna and Aetna is aiming to purchase Humana
  
• Regulators argue deals would lessen competition and drive up healthcare costs
  

The Obama administration filed two separate lawsuits in hopes of blocking further mergers within the US health insurance market on Thursday. The suits, filed by the US Department of Justice, seek to block Anthem from purchasing Cigna and Aetna from purchasing Humana. Regulators argue the deals would lessen competition and drive up healthcare costs.

“By reducing competition, this proposed merger [between Anthem and Cigna] has the potential to significantly increase the merged firm’s power in the marketplace, to the detriment of consumers,” Eric Schneiderman, attorney general in New York, said in a statement. New York, along with 10 other states and District of Columbia, has joined the federal complaint. “Employers will be left with fewer choices, and ultimately consumers could be saddled with higher premium costs, reduced access to providers, and lower quality care.”

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from Mergers and acquisitions | The Guardian http://ift.tt/2aeqHA1