Consumer advocates are still skeptical about the proposed merger between Centene and Health Net after a six-hour long hearing about the transaction, where insurance company executives provided vague explanations of how consumers would benefit for the merger, but were unwilling to make any specific commitments to protect consumers. On Friday, January 22, California Department of […]
Consumer Groups Question Aetna-Humana Proposed Merger at DMHC Public Meeting
On January 4, 2016, the Department of Managed Health Care (DMHC) held a public meeting on the proposed merger of Aetna and Humana. The public meeting was requested by consumer groups including Health Access, Consumers Union, and others to raise questions about the structure of the deal, its potential impact on California’s patients and health […]
At DMHC Public Meeting, Consumer Groups Question Proposed Centene-Health Net Merger
On December 7, 2015, the Department of Managed Health Care (DMHC) held a public meeting on the proposed merger of Centene and Health Net. The public meeting was requested by consumer groups including Health Access, Consumers Union, and others, to raise questions about the structure of the deal, its potential impact on California’s patients and […]
Attorney General Approves Daughters of Charity Hospital Deal, with Key Conditions
Yesterday afternoon, California Attorney General Kamala Harris approved the restructuring and support agreement between six Daughters of Charity Health System hospitals and BlueMountain Capital Management. The Attorney General’s approval includes significant conditions that keep key services open for 10 years, ensuring charity care levels at historical levels, and $180 million in capital improvements. Health Access […]
Blue Shield Tries To Back Out Of $140 Million Commitment to California Communities
When nonprofit insurer Blue Shield California made a $1.2 billion bid to acquire Care1st, a Medi-Cal managed care plan serving 500,000 Southern California patients, it agreed to conditions set forth by DMHC (Department of Managed Health Care), including a commitment to increase its investment in the state’s safety net by an additional $140 million over 10 […]
UCLA Forum tonight: Is Merger Mania Healthy?
“Is Merger Mania Healthy?” The Affordable Care Act (ACA) has inspired many providers to consolidate and major payers have now joined this trend. Anthem has announced that it is merging with Cigna, and Aetna announced it is merging with Humana. If these mega mergers are approved by the government, the health insurance industry will consolidate […]
DMHC Hearing on Blue Shield Acquisition of Care1st Gets at Larger Questions on Nonprofit Obligations
Yesterday’s hearing (covered today in the LA Times) on nonprofit Blue Shield of California and its bid to acquire for-profit Medicaid managed care plan Care1st provided better clarity on the issues at stake in the $1.25 billion transaction, and little reason to doubt whether the assets Blue Shield proposes to use should be subject to charitable trust obligations. The comment period […]
Blue Shield’s Obligations as a Nonprofit, Post ACA: New Health Access Issue Brief for Community Discussion
With a DMHC hearing pending, Health Access is pleased to release a new issue brief for dialogue and open discussion: “What is the Role of a Nonprofit Insurer? Should the Affordable Care Act Change the Expectations of Insurers with a Public Service Mission?” New questions have arisen about what it means to be a nonprofit […]