Following years of litigation, New York City has lost its appeal to block a merger between two local payors on antitrust grounds, according to a Crain’s New York Business report.
Group Health and Health Insurance Plan of Greater New York announced plans to merge into a for-profit company in Sept. 2005. The city filed a lawsuit in Nov. 2006 to block the merger between GH and HIP, claiming the companies had too large of a combined market share among the city’s workers. It provided coverage to approximately 92 percent of enrollees, according to the report.
A district court judge first ruled against the city in May 2010, and New York appealed that decision. Last week, Second Circuit unanimously agreed with the District Court. The lower court judge also rejected the city’s attempt to alter its original definition of what constitutes a market. The payors’ attorney said the city is unlikely to appeal.
Since the lawsuit was filed, the payors have been operating under a common holding company, EmblemHealth. In April 2007, EmblemHealth submitted to the state a plan to convert to a for-profit company, but that plan has not yet moved forward.
Related Articles on Antitrust Issues in Healthcare:
Judge Denies BCBS of Michigan’s Appeal to Dismiss Antitrust Suit
FTC Approves Merger Review of Georgia’s Piedmont Healthcare, Henry Medical Center
Outgoing Antitrust Chief Calls for Congressional Review of Merger Review Process
