In a letter, Consumer Watchdog called on the Department of Managed Health Care to enact consumer safeguards over the proposed merger between St. Louis-based Centene and Los Angeles-based Health Net.
Consumer Watchdog, headquartered in Santa Monica, Calif., asked the DMHC to use its full authority to ensure plans are not cancelled, benefits are not reduced and consumers do not bare the cost of the Centene-Health Net merger.
Centene and Health Net claim the merger will increase competition, improve care and benefit consumers. Healthcare mergers generally lead to the opposite: fewer choices, inadequate physician networks and higher premiums, Consumer Watchdog argues in the letter.
Consumer Watchdog suggested the DHMC consider the following conditions in the Centene-Health Net merger:
- Five years of enhanced rate review to ensure carriers are protected from merger costs.
- Mandate the combined organization participate in efforts to centralize a provider directory database.
- Centene should be required to maintain Health Net's individual and small group products at current rates for the next five years.
- Centene should be required to resolve litigation related to Health Net's quality of care.
Consumer Watchdog is currently involved in litigation with Health Net on behalf of the plan's consumers, claiming the insurer failed to provide carriers with accurate information about providers participating in their networks.
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