Topics
More on Mergers & Acquisitions

Court blocks Aetna, Humana merger

Aetna is giving serious consideration to an appeal.

Susan Morse, Executive Editor

A federal court has blocked the $37 billion proposed merger between Aetna and Humana on antitrust grounds.

"We're reviewing the opinion now and giving serious consideration to an appeal after putting forward a compelling case," said Aetna spokesman T.J. Crawford.

The ruling sets a precedent establishing Medicare Advantage as a separate market from traditional Medicare, according to the American Medical Association.

"The court's ruling sets a notable legal precedent by recognizing Medicare Advantage as a separate and distinct market that does not compete with traditional Medicare," said AMA President Andrew W. Gurman, MD.

The AMA also applauded the decision for protecting competition on the public exchanges and for protecting elderly patients.

[Also: AMA wants court to block Aetna-Humana merger]

"The court ruling halts Aetna's bid to become the nation's largest seller of Medicare Advantage plans and preserves the benefits of health insurer competition for a vulnerable population of seniors," Gurman said. "Aetna's strategy to eliminate head-to-head competition with rival Humana posed a clear and present threat to the quality, accessibility and affordability of healthcare for millions of seniors."

U.S. District Judge John D. Bates said in his ruling that meaningful action was needed to preserve competition and protect high-quality medical care from unprecedented market power that Aetna would acquire from the merger deal, according to the AMA.

The merger would unlawfully restrain competition in the sale of individual commercial insurance on the public exchanges in three counties in Florida identified in the complaint, Bates said.

David Balto of the Coalition to Protect Patient Choice also applauded the decision.

"The evidence was crystal clear that when health insurers merge consumers lose by paying higher premiums and receiving poorer  healthcare," Balto said.

Aetna had argued during trial in December that it could divest some of the business to Molina.

Twitter: @SusanJMorse