Critics on the left and right are criticizing the new state insurance commissioner's approval of the merger of health insurers Aetna Inc. and Louisville-based Humana Inc., “saying it deprived Kentuckians of a chance to voice their concerns,” Boris Ladwig reports for Insider Louisville.
Sharon Clark, who was commissioner during the Steve Beshear administration, “told IL in October that she did not
foresee any kind of competition problems in the state as a result of the merger, she was planning to hold a public hearing on the matter this spring,” Ladwig notes. "Her successor, Brian Maynard, told IL Tuesday via email that he does not believe such a
hearing is needed, saying it would have been an “'unnecessary formality.'”
A hearing is needed to let the public verify Maynard's conclusions, said Jim Waters, president of the Bluegrass Institute, a free-market think tank. He called "amazing" and "circular reasoning" this explanation by a department spokesperson, who said state law “requires the commissioner to approve a merger, unless the commissioner can prove at a public hearing that the merger does not meet the standards of (the law). After conducting the review of the filings, it was concluded that the merger met the standards of (the law). Therefore, it could not be proven at a public hearing that the merger did not meet the standards of (the law).”
The decision was also criticized by Richard Beliles, state chair of Common Cause Kentucky, and the Washington, D.C-based Sunlight Foundation, which campaign for open government; and Consumer Watchdog, a California-based nonprofit that says its mission is to "expose rip-offs and injustice" and "confront the industries and politicians responsible."
Carmen Balber, executive director of Consumer Watchdog, told Ladwig that public hearings are needed in states where Humana and Aetna do business “because of the significant impact the … merger could have on health insurance affordability and quality. Aetna has claimed savings from the merger, but in the past premiums have gone up after health insurance mergers, not down. Aetna-Humana have given no guarantee that it will be different this time.”
Ladwig notes that Humana has said, “The combined company will offer a broader choice of products and services, access to higher quality and more affordable care and a better overall experience in more locations around the country.”
"The Aetna-Humana merger would have very little impact on Kentucky’s health insurance industry because Aetna has such a limited presence here, according to the two researchers who analyzed the merger" for the insurance department, Insider Louisville reports.
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| Brian Maynard |
A hearing is needed to let the public verify Maynard's conclusions, said Jim Waters, president of the Bluegrass Institute, a free-market think tank. He called "amazing" and "circular reasoning" this explanation by a department spokesperson, who said state law “requires the commissioner to approve a merger, unless the commissioner can prove at a public hearing that the merger does not meet the standards of (the law). After conducting the review of the filings, it was concluded that the merger met the standards of (the law). Therefore, it could not be proven at a public hearing that the merger did not meet the standards of (the law).”
The decision was also criticized by Richard Beliles, state chair of Common Cause Kentucky, and the Washington, D.C-based Sunlight Foundation, which campaign for open government; and Consumer Watchdog, a California-based nonprofit that says its mission is to "expose rip-offs and injustice" and "confront the industries and politicians responsible."
Carmen Balber, executive director of Consumer Watchdog, told Ladwig that public hearings are needed in states where Humana and Aetna do business “because of the significant impact the … merger could have on health insurance affordability and quality. Aetna has claimed savings from the merger, but in the past premiums have gone up after health insurance mergers, not down. Aetna-Humana have given no guarantee that it will be different this time.”
Ladwig notes that Humana has said, “The combined company will offer a broader choice of products and services, access to higher quality and more affordable care and a better overall experience in more locations around the country.”
"The Aetna-Humana merger would have very little impact on Kentucky’s health insurance industry because Aetna has such a limited presence here, according to the two researchers who analyzed the merger" for the insurance department, Insider Louisville reports.
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