News Headlines Article

Patients win as larger insurers seek to cut costs with better service
San Luis Obispo Tribune

The planned mergers of several of America’s largest health insurers – Aetna combining with Humana, and Anthem with Cigna – is almost certain to be good for the insurers, reducing overhead and improving their bargaining position as they attempt to negotiate better rates with providers.

But what’s in it for you and me? The answer may surprise you: In all likelihood, the mergers will lead to better medical care at lower costs.

There is little doubt that consolidation will reduce the insurers’ administrative overhead. Aetna estimates, for example, that its merger with Humana could produce approximately $1.25 billion in annual cost savings by 2018.