Aetna Health Insurance reported it has agreed to acquire Humana Health Insurance for $37 billion. They are two of the largest health insurance companies in the United States. The combined company would have an estimated operating revenue of $115 billion and serve 33 million people. The companies said they would be able to operate more efficiently and negotiate more effectively with large health systems.
The reasons given for the acquisitions is the usual outright falsehoods. There are reasons for this type of venture, that is to eliminate competition, create a monopoly and create more income for CEO's and executives via larger salary and bonuses. There has never been a merger or buy out of another company that produced better service for the people or lower rates or prices for its products. Bank mergers that comes to mind such as the buyout of Whitney Bank by Hancock Bank. They also promised better service and then closed down the Whitney Bank in Algiers Point that had been in operations over 80 years. This writer wrote a commentary about that merger.
What Aetna sees is the Affordable Care Act bringing lower policy premiums to consumers and another government program that works. They don't like that so they want to eliminate competition and become a monopoly. Monopolies, if allowed to operate can set their own prices so they have to be broken up or prevented. The greatest of all monopolies are the 7 largest Wall Street Banks whose business went unregulated and played a large part in the second great depression of 2008. Those 7 banks hold assets that equal 65% of the nations GDP.
The next President should work to break up those 7 banks and the justice department should deny Atena's attempt to acquire Humana. The economy and the people have suffered enough.
This commentary written by Joe Lorio
