During a Virginia State Corporation Commission hearing today, Virginia Hospital & Healthcare Association leadership delivered testimony in opposition to the proposed merger of Anthem Inc. and Cigna Corporation.
Below is a statement regarding VHHA’s position.
“The combination of these two major insurers would have negative consequences for insurance policy holders and the public. News that another state, Missouri, rejected a proposed merger of two other major insurers coincidentally arrived as today’s hearing happened. The consequences of such a merger for Virginia and Virginians include a strong likelihood of premium cost hikes, and markedly less interest by insurers in partnering with health care providers and consumers on innovations to positively transform health care. Virginia health systems continue to focus on innovation to enhance patient care, quality, and value, and have partnered with struggling rural hospitals to protect public access to essential health care services. Coinciding with that period of transformation has been an era of historic lows in overall health care spending trends. Over the past decade or so, growth in national health care expenditures has declined, and there has been a correspondingly steady drop in the annual rate of hospital price increases. Unfortunately, large insurers in Virginia have repeatedly demonstrated an unwillingness to join in efforts to innovate to enhance health care value and access. The history of insurance consolidation stands in contrast to the strong evidence of downturn in overall health care costs and hospital price trends, as well as quality improvements that have coincided with provider integration. For these reasons, the Medical Society of Virginia, representatives of consumer and patient advocacy groups, and employers and other insurance purchasers have joined VHHA in opposing the proposed merger.”
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