Analysts Give Aetna, Anthem CEOs ‘Solid Grades’ For Senate Subcommittee Testimony
The executives' mission was to win support for proposed mergers. But concerns still exist about the impact these deals might have on consumers.
The Wall Street Journal's Money Beat:
Health Insurance Mergers: Aetna And Anthem Win Over Politicians
The chief executives of health insurers Aetna Inc. and Anthem Inc. went to Capitol Hill Tuesday to win support for their pending deals. The early read is mission accomplished. Wall Street analysts gave both CEOs solid grades for their performance before a Senate subcommittee on why the government should bless each of their deals. (Farrell, 9/23)
Health Plan CEOs Spar With Senate Democrats On Mergers
Senate Democrats are concerned that mergers among the five largest health insurers will narrow choices for consumers, a charge that the CEOs of the acquiring companies are downplaying as they try to focus on potential savings to policyholders. The Senate Judiciary Antitrust, Competition Policy and Consumer Rights Subcommittee is investigating whether Aetna Inc.’s acquisition of Humana Inc. and Anthem Inc.’s purchase of Cigna Corp. would have harmful effects on an industry that has been consolidating for the past five years. Amy Klobuchar of Minnesota, the ranking Democrat, said in a hearing Tuesday that the U.S. "values competition" and referred to the Sherman Act of 1890 that prohibits anti-competitive actions by companies as the "Magna Carta of free enterprise." (Chamseddine, 9/23)