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A Healthy Side of Insurer Mega-Mergers

Fuch's portrait
Aug 26 2015

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SIEPR in the News

As hospitals consolidate, more market power is needed to bargain for better prices.

Op-Ed by Victor Fuchs, Professor Emeritus of Economics and of Health Research and Policy and SIEPR Senior Fellow And
 
PETER V. LEE
Aug. 26, 2015 6:36 p.m. ET

Anthem’s proposed merger with Cigna following Aetna’s acquisition of Humana has set off alarms about lack of competition in the health-insurance industry. But policy makers should consider the potential benefits of industry consolidation. The greater efficiency and market power of larger insurance plans could lower prices for consumers.