A major development occurring with Anthem Blue Cross Blue Shield is the agreement for Anthem (a Blue Cross Blue Shield insurer) to acquire Cigna for $54 billion via cash and stock transaction in the second half of 2016, which is dependent upon passing state regulatory approvals and other requirements (CNN Money, 2015). The merger would leave only three major players, Anthem Blue Cross Blue shield, Aetna/Humana, and United Health, in the insurance industry, if approved (CNN Money, 2015). Aetna acquired Humana just recently in a merge, as well as United Health purchasing Catamaran, a pharmacy-benefits manager and prescription provider (CNN Money, 2015). It is believed the reasoning for the mergers is due to the Affordable Care Act because it has meant more business for major insurers, but the law has also put more pressure on industry profits (CNN Money, 2015). However, the merges brings a concern for physicians and the American Medical Association. Physicians fear that it will put too much power in just a handful of insurance companies and the American Medical Association says that it will reduce competition and …show more content…
In regards to the concerns of physicians thinking that too much power will be in just a handful of insurance companies and the American Medical association, believing that it will reduce competition and decrease choice, it could be a legitimate concern for customers. The American Academy of Family Physicians feels that the larger insurance companies will have more clout, giving them an increased leverage over negotiating rates with hospitals and physicians by increasing premiums and a reduction in the number of doctors and hospital that are part of the network coverage plan (CNN Money, 2015). This, however brings debate due to little evidence showing mergers in insurance increase costs and that consolidation among hospitals and other health care providers is really to blame for higher premiums (CNN Money,