AMA: Giant Mergers Are Big Deal for Physicians and Patients
28 October 2003 - 8:22AM
PR Newswire (US)
AMA: Giant Mergers Are Big Deal for Physicians and Patients
CHICAGO, Oct. 27 /PRNewswire/ -- The following statement is
attributable to: Donald J. Palmisano, M.D., J.D., AMA President:
"The American Medical Association (AMA) is alarmed about the
announced acquisition of the WellPoint Health Networks, Inc., by
Anthem, Inc. The proposed merger will create a giant company on a
scale not seen in an industry where competition has already been
dramatically reduced. "The model of a traditional not-for-profit
health plan, which operated for the benefit of the community, seems
to be disappearing. Since abandoning their not-for-profit missions
and converting to publicly-traded for-profit entities, WellPoint
and Anthem have both engaged in acquisition sprees designed to
conquer markets and dominate the industry. This strategy has
culminated in today's acquisition that will create the nation's
single largest health insurer, covering 26 million Americans in 19
states. "The AMA is also concerned about the recent announcement
that UnitedHealth Group is acquiring Mid Atlantic Medical Services
Inc., (MAMSI), an acquisition that will give United over 20 million
enrollees across the country. "As a result of the proposed
acquisitions announced today, United and Anthem will control over a
quarter of the nation's health insurance market. In one day, these
two health insurance giants have announced spending almost $19
billion to control a bigger piece of the health insurance pie.
Ironically, these expenditures come at a time when insurance
premiums are rising, adding to the number of uninsured. "The
announcement of these two mergers on the same day should raise
concerns that the country is headed toward a health care system
dominated by a few publicly-traded companies that operate primarily
in the interest of shareholders. For quite some time, the AMA has
urged federal regulators to seriously examine consolidations in the
health insurance industry. These mergers should be highly
scrutinized to ensure they are in the best interest of our
patients. The health insurance industry should receive no
favoritism as it marches toward domination by a few Goliaths."
DATASOURCE: American Medical Association CONTACT: Robert J. Mills,
American Medical Association Media Relations, +1-312-464-5970 Web
site: http://www.ama-assn.org/
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