Tuesday, August 21, 2012

Consolidation in the health insurance Market

Consolidation in the health insurance Market
Dealbook notes the acquisition of Coventry Health Care by Aetna as a trend during this sector:
Aetna’s acquisition of Coventry is that the latest deal in associate degree business that has been spurred to consolidation partially due to the Obama administration’s sweeping enlargement of health care coverage in the country. Last month, well point in agreement to buy Amerigroup for concerning $4.9 billion.

Before Mitt Romney decided that Medicare cost containment was one thing to dishonestly campaign against, Paul Ryan and President Obama were both proposing that cost containment was a good idea. The difference perhaps was that the President’s idea for doing thus involved price controls whereas the Republicans wanted to accept additional competition. Consolidation, however, is usually a locution for the larger players to extend their market share on the hope of reducing competition. If these Republicans ar serious concerning hoping on competition – shouldn’t they be condemning this consolidation? Update: A hat tip to a loyal reader of Mark Thoma’s diary named Anne for providing us with a link to James C. Robinson who discusses the consolidation in the hospital sector.

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