By Ken Terry | April 9th, 2009 @ 3:50 pm
The Obama Administration’s 4.5 percent pay cut to Medicare Advantage plans for 2010, while a bit less than expected, is helping to fuel rumors that some major health insurers will merge. Aetna is said to be interested in taking over Humana, and United is reportedly eyeing Coventry.
Such mergers would greatly concern health care providers, especially physicians. Many hospitals have formed larger systems that can hold their own with insurers, but most physician groups have little leverage with the big plans, and a further consolidation of insurers would place them at an even greater disadvantage. According to the AMA, a single health plan already has at least a 70 percent market share in one of six markets.....
Medicare Cuts and Reform May Lead to Insurance Mergers | BNET Healthcare Blog | BNET
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