Aetna-Coventry merger reflects industry changes After A Health Care Reform

Health insurance assistance bitterly against the health reform law, but how the merger between Aetna and Coventry Health Care announced Monday shows the industry know that there is still money to earn.

"You have an arms race going on in health care," said Robert Laszewski, a health care consultant and president of Health Policy and Strategy Associates in Alexandria, Virginia said Laszewski health insurance, hospitals and other participants merge into larger units in the hope of keeping their own costs and grabbed a bigger share of the market, how they are transformed by the health reform. What the Aetna Coventry Health Care merger does not go well, at least in the short-term insurance premiums are lower for people's health, he said.

The health insurance industry is in upheaval as a result of the health reform law, which the Supreme Court confirmed in June. Twenty-five million people buy health insurance regulated "exchange" markets in the United States, according to the Congressional Budget Office.

In addition to the increase in its Medicare and Medicaid business, the merger also allows Aetna better access to the "bottom" of the health insurance market - people who go to Medicaid, individual insurance and business plans of small, Laszewski said.
The Act defines an unprecedented federal government rules on health insurance.
Aetna merged with Coventry Health Care of the latest in a series of moves by major health insurance is more pre-enlargement health care reform bill will receive health insurance in 2014. The second largest insurance company in the United States, WellPoint Inc., announced last month would Amerigroup Corp., a company that deals with the major part of the state Medicaid programs, for $ 4900000000 to purchase.
The consolidation is not only happening in health insurance.
Aetna estimates that the combination with Coventry Health Care, in Bethesda, Maryland, the merged entity will save $ 400,000,000 one year from 2015. Health reform aims to reduce future health, that some companies get $ 4780000000000 care less, Laszewski said.