Judge: Aetna ditched exchanges to 'avoid antitrust scrutiny': 5 things to know

The decision drew mixed reactions. But under questioning, Mayhew admitted that "he had been told to keep strategy discussions ... verbal so there wouldn't be written communication that could be shared with the Justice Department during discovery for the litigation". However, the court ruled their "proffered efficiencies do not offset the anticompetitive effects of the merger".

On Monday morning, Bates's 156-page opinion questioned the companies' arguments that their marriage would cut their costs, which in turn would fuel innovation and lower costs for consumers. The decision enjoined the mega-merger on grounds that it would be likely to "substantially lessen competition" in markets for individual Medicare Advantage plans as well as for health insurance coverage sold on public exchanges.

The merger agreement, which was announced in July 2015, is due to expire on February 15. Providers - hospitals, pharmacies and doctors groups - and insurers have felt compelled to grow bigger to gain leverage in an increasingly complex, cutthroat heath care industry.

More news: Jammeh arrives at Banjul airport after stepping down

Wells Fargo analyst Peter Costa said that each company independently was an attractive investment and that it seemed unlikely that the Department of Justice would change its stance on the merger under the Trump administration, according to Seeking Alpha.

"In that (Medicare Advantage) market, which is the primary focus of this case, the merger is presumptively unlawful - a conclusion that is strongly supported by direct evidence of head-to-head competition as well". Humana has more than 3.1 million members, while Aetna has more than 1 million. (Humana) (headquartered in Louisville, KY) [NYSE:HUM] and its subsidiaries remain unchanged. "(Molina) therefore will need to build its non-dual Medicare Advantage provider network essentially from scratch" in 364 counties, including the 13 in Ohio. "But while that evidence tends to show that Aetna had good business reasons for reducing its exchange footprint across the country, it does not show that Aetna withdrew from these specific counties for business reasons".

Jonathan Mayhew runs Aetna's exchange business and that the company should pull out of the exchanges altogether because it "has continued to deteriorate as the year has progressed". "He added that it would be hard, though not impossible, for Aetna to wait for Trump's new antitrust enforcers to be named and then strike a settlement to save the merger, perhaps by offering to divest more assets", Bartz writes.

More news: CBI visits Delhi govt's info and publicity dept headed by Sisodia

In August, the month after the Justice Department's decision was made, Aetna officially left numerous Affordable Care Act exchanges. The court also faulted Aetna for its efforts to pull out of Obamacare marketplaces in Florida, Georgia and Missouri, saying the insurer intentionally left the public exchanges in order to avoid antitrust scrutiny. A study released in September 2015 by the American Medical Association found OH could be heavily affected by the deal.

The suit alleged that the merger would hurt competition in the health care market, leading to higher prices for consumers and fewer services for Medicare patients.

More news: Paul McCartney Is Suing Sony Over Rights To Beatles Songs


Popular
  • Johnny Depp gets emotional during acceptance speech at People's Choice Awards

    E! News said the former couple finally reached a settlement since divorce papers were filed back in May of previous year . In mid-January, after an extremely long and drawn-out process, Johnny Depp and Amber Heard finalized their divorce.
    Group protests ban on jallikattu

    Group protests ban on jallikattu

    Students and nurses of Thanjavur Medical College Hospital staged a dharna in front of the local railway junction. Therefore, we must know how much money our films are making in Tamil Nadu to come to an informed opinion.
    Fatal Tesla crash probe: No recall needed, says Uncle Sam

    Fatal Tesla crash probe: No recall needed, says Uncle Sam

    It's good news for Tesla Autopilot, which has come under scrutiny in the past few months following the fatal accident in May. NHTSA's report on the analysis also highlighted some strengths of the technology.
  • Stars to react to the passing Mary Tyler Moore

    Stars to react to the passing Mary Tyler Moore

    She won a Tony for her performance in Whose Life is it Anyway? in 1980 and received an Oscar nod for Ordinary People. She was married three times and welcomed one child, a son Richard, who died from an accidental gunshot in 1980.
    Meryl Streep celebrates record-breaking Oscar nod

    Meryl Streep celebrates record-breaking Oscar nod

    Meanwhile, the milestone only further solidifies the three-time Academy Award winner's hold on most Oscar nominations. In the movie, Streep plays an aging socialite with dreams of being a singer, and obviously, she nails it.
    Malia Obama to work for Harvey Weinstein in Hollywood

    Malia Obama to work for Harvey Weinstein in Hollywood

    Representatives for the Weinstein Co . and for the Obama family are yet to formally comment on the exciting news. Page Six alsoreports Malia interned at Halle Berry's CBS show " Extant ", and at an unnamed fashion house.
  • Hamon, Valls qualify to France's Left primary run-off

    Hamon, Valls qualify to France's Left primary run-off

    Former French prime minister Manuel Valls leaves the voting booth. Mr Fillon is widely expected to emerge as the victor .

    Adele performing at 59th Grammy Awards

    The Recording Academy announced Friday that Adele will perform at the February 12 show at the Staples Center in Los Angeles . Adele is also a pal of Grammy host James Corden; her installment of his Carpool Karaoke is the most-viewed of all time.
    Zaza Pachulia Says Whenever Russell Westbrook Wants to Throw Hands, He's Ready

    Zaza Pachulia Says Whenever Russell Westbrook Wants to Throw Hands, He's Ready

    The double-figure turnover total was the sixth of Westbrook's career and the third during a triple-double performance. Pachulia was called for a Flagrant 1 Foul, which leads to two free throws and ball possession for the Thunder.
  • Astana conference ends with trilateral pledge to enforce Syrian truce

    Astana conference ends with trilateral pledge to enforce Syrian truce

    Iranian Deputy Foreign Minister Hossein Jaberi Ansari is also participating. "Things remain unclear", the FSA commander said. The rebels' loss of their former urban stronghold, Aleppo, has shifted the momentum of the fighting in favour of Assad.
    NHTSA Tesla investigation finds no defects, following fatal crash

    NHTSA Tesla investigation finds no defects, following fatal crash

    Autosteer is intended for use on highways with clear lane markings and maintains position within the lane in slow-moving traffic. This update includes the new Forward Collision Warning feature, Traffic-Aware Cruise Control (TACC), and Low-Speed Autosteer.
    Winter storm warning in place for parts of Pa.

    Winter storm warning in place for parts of Pa.

    Whatever snow we do get is expected to be the heavy, wet variety, which may make the Tuesday morning commute hard in some areas. Between 4 to 9 inches of heavy wet snow and sleet is possible, with the heaviest accumulations occurring over higher terrain.

CONNECT