Outline of Aetna Decision
Product Market Aetna's defense depended a lot on whether they could convince Judge Bates that Original Medicare and Medicare Advantage were in the same market. This would have been disastrous for the DOJ's case because the increases in market share from the Aetna/Humana merger would not look scary in a much bigger market that included Original Medicare. Indeed, it would be hard to imagine a merger among Medicare Advantage competitors that would violate antitrust laws if this
Consumers should rest assured – 6 reasons Aetna decision unlikely to be overturned on appeal
Judge John Bates ruled Monday that the proposed merger between Aetna and Humana was likely to substantially lessen competition in the Medicare Advantage market in all 364 complaint counties as well as the public exchange in three counties in Florida. After the decision came down blocking the merger, Aetna released a statement saying it was seriously considering an appeal. While this may leave consumers wary of too much celebration over today’s victory, consider the following
AETNA-HUMANA MERGER BLOCKED
A federal judge has blocked the proposed $37 billion merger between mega health insurers Aetna and Humana. U.S. District Judge John D. Bates ruled that the merger would substantially reduce competition for Medicare Advantage plans in 364 counties. Judge Bates sided with the DOJ on its definition of the Medicare Advantage market, ruling that it does not include traditional Medicare plans. A more complete summary of the 156-page decision will be sent from The CPPC later today.
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