No (Also Fuck Cigna)

I hope that the FTC, DoJ and the rest of the TLAs are ramping up their efforts to stop Cigna and Humana from merging.

This will get us nothing but worse and more expensive insurance. 

The only ones who benefits are the chief executives who get bonuses and golden parachutes and the investment banks who conduct the transactions.

Cigna and Humana are in talks for a combination that would create a new powerhouse in the health-insurance industry.

The companies are discussing a stock-and-cash deal that could be finalized by the end of the year, assuming the talks don’t fall apart, according to people familiar with the matter.

………

Joining forces would give the pair scale to rival that of UnitedHealth Group and CVS Health and vault the combined company into the top tier of integrated healthcare firms. Cigna, which had revenue of about $181 billion last year, would be able to marry its huge pharmacy-benefit unit, which manages drug plans, and its strength in commercial insurance with Humana’s big position in the fast-growing Medicare segment, something Cigna has long sought.

So basically, they are looking to create a merged entity which does a better job of looting (PBMs and Medicare Advantage) the health care system.

………

Investors also are nervous about potential antitrust scrutiny of this deal, no matter what divestitures take place to placate regulators. If the companies go ahead, it will almost certainly be challenged by the Justice Department.

The reason it is hard to fathom such a deal sailing through without opposition from the Biden administration is that both insurers have sizable PBM businesses, a toxic three-letter acronym in Washington these days. Cigna is number two in the business in terms of prescriptions managed while Humana is number four, according to Drug Channels. Combining two large PBMs might raise concern that the middlemen would become even more concentrated.

I'm not even sure how PBM's became a thing.  They appear to provide no service beyond extracting unproductive rents from drug stores and drug consumers.

Here's a better idea, ban PBMs and wind down the extremely inefficient and harmful Medicare advantage program.