California insurance commissioner Dave Jones urged federal officials Thursday to block a merger between health insurers Aetna and Humana on grounds the deal is anti-competitive and would hurt consumers, California Healthline reported.
Mr. Jones' comments arrived three days after California's other insurance regulator signed off on the merger. Shelley Rouillard, director of the California Department of Managed Health Care, reached an agreement last Monday with Hartford, Conn.-based Aetna stating if the merger with Louisville, Ky.-based Humana is approved, Aetna will be required to limit small group premium rates, undergo greater state oversight of its rates and invest in health initiatives, among other terms.
Despite Ms. Rouillard's agreement, Mr. Jones said the merger "has anti-competitive impacts that will likely result in increased prices, decreased availability of health insurance products, and decreased quality and access to healthcare," California Healthline reported.
Aetna officials responded by saying the Department of Managed Health Care, the only regulatory agency in California with oversight of the merger, had already granted approval.
Mr. Jones cannot block the deal, but his recommendation could hold clout when the U.S. Department of Justice rules on the merger.
Mr. Jones previously implored the Department of Justice to halt a $54 billion merger between Indianapolis-based Anthem and Bloomfield, Conn.-based Cigna citing the merger could increase consumer cost and dilute access to care.
Aetna hopes to complete the acquisition by the second half of 2016.