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After the fact: the case for posttransaction antitrust review of health plan mergers
1University of Scranton, Moses Taylor Hospital, Scranton, Pennsylvania, USA.
Abstract:
When health insurance administrators contemplate mergers or consolidations of their plans, the transactions are generally subject to federal or state antitrust review. Regulators have traditionally examined proposed transactions for their posttransaction market power and the anticipated operating efficiencies and then decided whether to permit the transaction. Given the somewhat speculative nature of preand posttransaction market power and efficiency projections, antitrust policymakers should consider allowing the mergers or consolidations of health insurance plans to proceed while regulators subject the process to posttransaction review and enforcement.
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