U.S. Judge Blocks Aetna-Humana Merger

U.S. District Judge, John D. Bates supports the Justice Department’s ruling last July 2015 to block the $37 billion megamerger between two of the biggest names in health insurance, Aetna and Humana. The Justice Department of the U.S. said in July that the multi-million dollar deal would hurt competition and cause a price hike for consumers.

Judge Bates says in his 158-page opinion: 

"The Court is unpersuaded that the efficiencies generated by the merger will be sufficient to mitigate the anticompetitive effects for consumers in the challenged markets,"

Aetna spokesman, T.J. Crawford comments: 

"We are reviewing the opinion now and giving serious consideration to an appeal, after putting forward a compelling case,"

Aside from the Aetna-Humana merger, the U.S. Justice Department also filed a lawsuit to block Cigna and Anthem’s $54 billion merger under the same argument, saying that the consolidation will lead to a rise in prices for health insurance in the country.