Justice Dept Says Aetna- Humana Merger To Harm Seniors, Eliminate Competition

(RTTNews) - The Justice Department, in the antitrust trial against the proposed Aetna- Humana Merger, argued that the merger would harm senior citizens who buy private Medicare plans. The U.S. Department of Justice stated that the merger would also harm consumers who buy plans on Affordable Care Act marketplaces, reports said.

However, healthcare insurer Aetna And Humana defended their proposed merger in the antitrust trial on Monday.

The U.S. antitrust trial is seeking to block Aetna's $37 billion acquisition of Humana, for loss of competition.

Justice Department lawyer Craig Conrath told a federal judge that the competition between Aetna and Humana has been critically important, mainly for private Medicare Advantage plans, a subsidized government insurance program for seniors.

The government argued that the merger would eliminate competition in 364 counties in 21 states where both companies currently compete to sell Medicare Advantage plans, likely forcing seniors to pay higher premiums.

Regarding Aetna's proposal to sell more than $100 million in assets to a smaller company to fulfill the merger, the Justice Department told the judge that the remedy poses risks for seniors who depend on Medicare. The lawyer stated that the asset buying insurer - Molina Healthcare Inc. is largely focused on Medicaid and is unlikely to replace the loss of competition.

Meanwhile, Aetna lawyer John Majoras noted that Molina would use the divested assets to emerge as a considerable competitor.

Trial proceedings are set to run through December 30, with decisions expected next month.

The U.S. Department of Justice had filed a civil antitrust lawsuit on July 21 seeking a permanent injunction that would prevent the closing of the transaction.