Large insurers intend to merge, but seek approval from Florida regulators
Two of the largest health insurance companies in Florida are petitioning lawmakers to approve their merger. Aetna and Humana intend to join together, creating a larger insurance organization. The merger has generate some controversy, with consumer advocacy groups suggesting that the merger would lead to higher health insurance rates and fewer options for those that need coverage. These concerns have been shared by some lawmakers, who are convinced that the merger would be in the best interests of the state’s residents.
Aetna and Humana merger could create some $1.25 billion in savings for consumers
Aetna and Humana believe that their merger would be a major benefit for consumers, creating an estimated $1.25 billion in savings over the coming years. These savings could be used to improve benefits and create new health insurance programs that could benefit those living in Florida. Such programs could prove to be a boon for as many as 3 million consumers living in the state.
Merger plans have generated some controversy in Florida
Plans for the merger were initially announced earlier this year, but consumer advocacy groups have not been convinced that the merger would be as beneficial for consumers as it would be for the health insurance companies. Those with concerns regarding the merger have expressed worry that the merger would result in higher out-of-pocket costs for consumers, but Aetna believes that the merger would, eventually, lead to significant savings. This may be true, considering the rapidly rising cost of health insurance in general.
Regulators will be examining the potential impact of the merger
Insurance regulators will have to approve the merger of the health insurance companies before plans can move forward. State officials will be looking into the merger aggressively in order to determine whether or not it would be a benefit for consumers in the state. If regulators find that the merger would become a major problem for consumers, the merger is likely to be called off. Regardless of whether the merger is successful or not, health insurance premiums are expected to increase in the coming years.