Combination Would Significantly Reduce Competition In Delaware Medicare Advantage Market

Delaware’s Attorney General will join the U.S. Department of Justice and eight other attorneys general in opposing the merger of health insurance companies Aetna and Humana – the third and fifth largest health insurance companies in the country – arguing that the combination would reduce competition in Delaware and drive up prices.

Both Aetna and Humana sell Medicare Advantage plans in New Castle and Kent counties, which are offered as an alternative to traditional Medicare and a merger would result in high market share by the combined entity in those two counties.

“This proposed merger would very significantly reduce competition for health insurance through Medicare Advantage plans in the counties that contain three-quarters of our state’s population,” Attorney General Matt Denn said. “At a time when health care costs are already a concern, this would move Delaware in the wrong direction.”

The complaint by the USDOJ and the attorneys general of eight states and the District of Columbia filed in U.S. District Court for the District of Columbia explains, “Today, Aetna and Humana compete across the country to sell Medicare Advantage plans, a market-based alternative to traditional Medicare. This competition benefits Americans who can least afford health insurance. It benefits seniors, who visit doctors and hospitals more than twice as much as the average person and have less income than the average American household.”

The challenge to the Aetna-Humana merger also is based on reduced competition between Aetna and Humana nationally in offering health coverage on state health care exchanges, but Humana does not currently participate in the exchange in Delaware. USDOJ and a number of states also filed a challenge to the proposed merger of health insurance companies Anthem and Cigna. Anthem does not operate in Delaware.

A release from USDOJ announcing the federal-state action, including a link to the filed complaint, can be found HERE.

Wilmington, DE – Governor Markell released the following statement regarding DuPont’s announcements of employee reductions and that its Specialty Products business would be based in Delaware.

“DuPont’s announcement today is deeply disappointing, especially to the thousands of Delawareans who helped this company grow and succeed for generations. DuPont’s number one asset is its people, and the innovations that the company has produced during its storied history are a testament to the quality of those people. For those affected by today’s announcement, they should know that the State will do all that it can in the coming months to assist them as they evaluate new opportunities.”

“I am pleased that DuPont has committed to basing its Specialty Products business here. That business will be well-positioned not only with products like Kevlar and Tyvex, but also industry-leading electronics and communications, nutrition, and safety businesses. We look forward to doing all that we can to promote the success of that business and will continue to urge DuPont and Dow to see the value of locating other businesses here in Delaware, where they have grown and succeeded in the past.”

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Wilmington, DE – Governor Markell released the following statement regarding the announcement of a merger between DuPont and Dow:

“Delaware has been home to DuPont’s global headquarters for more than 200 years and to an important Dow Electronics Materials business for decades. These are world class companies whose merger has the potential to spawn three well-positioned competitors in the agriculture, material sciences and specialty products sectors.

“I have spoken to DuPont CEO Ed Breen about plans for DowDuPont. We have talked about the great business environment in Delaware and the many talented scientists, engineers and business leaders who call Delaware home and who can be at the center of growth for the three new businesses. We will continue to advocate that Delaware’s many advantages can be of major benefit to the new companies.

“None of this, of course, is of any solace for the workers and families who will be affected by this transition. The state is committed to supporting those affected by DuPont’s cost cutting in Delaware.”

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