The Department of Justice has significant concerns about a proposed merger between two major health insurers, Aetna and Humana, according to reports.
Humana shares fell 11 percent at news that Justice officials are scheduled to meet Friday with the two companies to discuss concerns about the deal, which would combine two of the largest providers of Medicare Advantage plans to seniors and further consolidate the insurance industry in a trend that’s been troubling to antitrust regulators.
Aetna is seeking to win approval for its takeover of Humana. Officials from both companies are meeting with Assistant Attorney General William Baer on Friday, two weeks after he met with competitors Anthem and Cigna, which are seeking their own $48 billion merger.
If both deals are approved, the number of major insurers would be reduced from five to three.
Analysts interpret a meeting with Baer as negative, since it would indicate Aetna is having trouble relieving the agency’s concerns, which could increase the possibility of litigation.
