Comptroller Kevin Lembo said Wednesday he wants to see an open and thorough review of a proposed merger between Anthem and Cigna in order to address significant concerns raised by healthcare consumers and providers.
Lembo made his request in a letter this week to the state Department of Insurance (DOI). Lembo said he is not, at this point, advocating that the DOI deny or approve the proposed Anthem and Cigna merger – but simply urges an open, inclusive and thorough review.
Lembo, as the administrator of the state’s largest health plan, covering more than 200,000 members, expressed his support for a recent request by the Connecticut Campaign for Consumer Choice to:
· Require that the public hearing be held at a venue and time outside the 9-to-5 work day that allows for maximum public participation.
· Grant interested parties intervener status to allow for an adequate review of the proposed merger.
· Commission a study that will analyze the potential impact on cost, access and quality.
The merger would increase the Connecticut health insurance concentration more than 40 percent, Lembo said.
“Studies have shown that concentration in the fully insured commercial market can lead to higher fully insured premiums for consumers,” Lembo said. “Significant market concentration has also been associated with lower provider reimbursement rates. As the administrator of a self-insured health plan, I welcome the potential for lower prices for health services – however, in certain instances, the lower reimbursement rates negotiated by a dominant insurer in a market may result in a reduction in access to care provided by physicians.
In a written statement Anthem said, “Expanding access to affordable health coverage is the foundation of our combination with Cigna and will remain Anthem’s top priority. Anthem and Cigna have limited overlap in a highly competitive industry, and together will be in a better position to improve consumer choice and quality. Additionally, we will be better able to manage the cost drivers that negatively impact affordability for consumers.”
