Insurance Update
Aetna’s Merger with Humana Blocked by Federal Judge
February 2017

In a decision released on January 23, 2017, a Federal judge temporarily blocked the proposed $37 billion merger between health insurance companies, Aetna and Humana. The judge’s decision cited reduced competition as the reason to block the merger.

The ruling marks a significant setback for the insurance companies, whom in July 2015, announced the proposed merger to create the largest seller of Medicare Advantage plans, covering more than 4.1 million seniors.
Last year, CAMFT expressed concerns to regulatory agencies in connection with the proposed acquisition of Humana by Aetna and requested the agencies thoroughly review the merger to ensure consumers’ access to behavioral/mental health care would not be negatively affected and that provider contracts are still competitive.

Although the companies can appeal, industry experts say that is unlikely. CAMFT will continue to advocate for a diverse and competitive healthcare market.