Physicians and health insurers came back from the Labor Day weekend ready to rumble over market concentration data.
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The American Medical Association (AMA) began selling a report showing how it thinks Anthem Inc. (NYSE:ANTM) could reshape the U.S. commercial health insurance market if Anthem succeeds at acquiring Cigna Corp. (NYSE:CI) without having to make any major divestitures of operations.
The AMA also began selling a report about how health insurance market concentration might change if Aetna Inc. (NYSE:AET) can complete a proposed acquisition of Humana Inc. (NYSE:HUM) without making major changes.
Antitrust regulators often describe market concentration using the Herfindahl-Hirschman Index (HHI) system. The most competitive markets have an HHI of 0, and the least competitive have an HHI of 10,000.
In the Anthem-Cigna report, the AMA says Indiana has such a concentrated commercial health insurance market that its HHI is already over 3,000. Letting Anthem complete the Cigna deal without major changes would push state HHIs over 4,000 in Indiana, New Hampshire and Maine, according to the AMA.
The current version of the Anthem-Cigna deal could also leave Connecticut, Virginia, Kentucky, Georgia, Nevada, Colorado and Missouri with HHIs over 2,500, the AMA says.