American Medical Association President Andrew Gurman, MD, issued a statement Monday in support of blocking Aetna's acquisition of Humana.
The two payers are up against the U.S. Department of Justice in a second antitrust trial that began Monday, according to a report in The Wall Street Journal.
"Together [Aetna and Humana] would create an insurer Goliath with the market power to raise premiums, lower plan quality and eliminate choice for a vulnerable population of seniors in the Medicare Advantage program," Dr. Gurman said in a statement. As two of the four largest sellers of Medicare Advantage plans, a merger would put seniors at risk, Dr. Gurman said.
Despite Aetna's argument the merger would lower costs by creating efficiencies, Dr. Gruman cited an AMA analysis that found the proposed merger would reduce competition in 19 states. Reduced competition would increase costs, he said.
"The AMA stands by the conclusion that Medicare Advantage is a distinct product market where competition is important and Aetna's argument to the contrary — that it competes with the federal government offering traditional Medicare — is a flawed defense of a highly anticompetitive merger."
More articles on payer issues:
Nebraska Medicare beneficiaries see $15M in savings for 2016
Humana deploys rewards program for Medicare Advantage members
Anthem, Owensboro Health to add 50 physicians to network