The public hearing on UnitedHealth Group‘s proposed acquisition of Health Net is scheduled for this morning at the Connecticut Insurance Department.
UnitedHealth Group agreed in July to pay about $510 million to buy Health Net’s northeastern licensed subsidiaries, which have 578,000 members in Connecticut, New York and New Jersey.
Under the deal, UnitedHealth agreed to purchase the rights from Health Net to assume its commercial members as they renew coverage.
UnitedHealth said it also will pay Health Net $60 million for its Medicare and Medicaid businesses.
On Friday, the Hartford Business Journal reported that the state insurance department denied a request by the Connecticut State Medical Society and other consumer advocacy groups that were seeking intervenor status at the public hearing.
The state medical society, American Medical Association and several other consumer advocacy groups are raising concerns about the proposed deal, including that it will lead to further consolidation in the Connecticut market, creating an “anticompetitive effect.”
CSMS appealed the insurance department’s decision, but it was denied this morning, a source told the HBJ.
The groups were seeking intervenor status because it would allow them to “be heard beyond just a member of the general public,” said Matthew Katz, executive vice president of the state medical society.
The state insurance department turned down the request Thursday, citing “timeliness and merit” issues.
Katz said his organization still plans to provide testimony raising their concerns.
