Doctors worried about health insurance merger
Associated Press
DENVER - Doctors warned the state insurance commissioner on Monday that the proposed merger of Colorado- and California-based health insurance companies could threaten physicians' bargaining power and their ability to control patient care.
UnitedHealth Group Inc. has proposed merging with Cypress, Calif.-based PacifiCare Health Systems Inc., creating the second largest health insurance company in the nation.
The $8.1 billion merger, which is expected to close by the end of the year, would affect people in 10 states and has been approved by regulators in six of them.
Dr. Richard May, president of the Colorado Medical Society, said that state would be most affected by the merger because UnitedHealth and PacifiCare make up 23 percent of the health insurance business here.
"When an HMO owns enough of your practice to control it, they can dictate the terms," said May, an orthopedic surgeon.
He said Colorado should force UnitedHealth to guarantee that it won't raise premiums and cut payments to doctors to pay for the merger.
Doctors and consumer groups in California have expressed similar concerns.
Dr. Reed Tuckson, a senior vice president for Minnetonka, Minn.-based UnitedHealth, said the company has invested in technology, including electronic patient records and physician progress reports, which will help improve service. He said the company is committed to working with doctors to improve care.
State insurance regulators say they expect the merger will decrease competition but that bargaining clout and advances in technology would help keep health care costs down.
Under Colorado law, the four largest health insurers cannot have more than 75 percent of the market. If the merger is approved, 60 percent of the commercial market would be held by two companies - United and Anthem.
DENVER - Doctors warned the state insurance commissioner on Monday that the proposed merger of Colorado- and California-based health insurance companies could threaten physicians' bargaining power and their ability to control patient care.
UnitedHealth Group Inc. has proposed merging with Cypress, Calif.-based PacifiCare Health Systems Inc., creating the second largest health insurance company in the nation.
The $8.1 billion merger, which is expected to close by the end of the year, would affect people in 10 states and has been approved by regulators in six of them.
Dr. Richard May, president of the Colorado Medical Society, said that state would be most affected by the merger because UnitedHealth and PacifiCare make up 23 percent of the health insurance business here.
"When an HMO owns enough of your practice to control it, they can dictate the terms," said May, an orthopedic surgeon.
He said Colorado should force UnitedHealth to guarantee that it won't raise premiums and cut payments to doctors to pay for the merger.
Doctors and consumer groups in California have expressed similar concerns.
Dr. Reed Tuckson, a senior vice president for Minnetonka, Minn.-based UnitedHealth, said the company has invested in technology, including electronic patient records and physician progress reports, which will help improve service. He said the company is committed to working with doctors to improve care.
State insurance regulators say they expect the merger will decrease competition but that bargaining clout and advances in technology would help keep health care costs down.
Under Colorado law, the four largest health insurers cannot have more than 75 percent of the market. If the merger is approved, 60 percent of the commercial market would be held by two companies - United and Anthem.
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