Published: 3/30/2016 10:48:53 PM
Department approves health insurance merger The New Hampshire Insurance Department has approved the proposed merger between health insurance companies Aetna and Humana in the state, despite the fact that the new company will have a market share of up to 38 percent.
Both companies sell Medicare coverage in the state. A review by the insurance department said that Aetna and Humana hold a combined 20.4 percent of the market share for Part D plans and 37.8 percent of the market share for Medicare Advantage plans, the primary types of plans both companies sell.
Because the companies collectively have more than 12 percent share in each of these markets, the department was required by state law to scrutinize the transaction more closely, in what is known as a Form E review.
The insurance department’s review said there would be no “anti-competitive effect” from a merger, partly because 18 New Hampshire companies offer Part D plans.
“The merger would not have the requisite anti-competitive effect as to Medicare Part D,” the insurance department’s order states.
While the Medicare Advantage market is more concentrated, with just nine companies offering plans in the state, the department said Aetna and Humana are not direct competitors because Aetna ceased writing new business in the state in 2015.
Monitor staff