The Humana acquisition will accelerate our growth in Medicare Advantage
” the acquisition will substantially accelerate our ability to grow in Medicare Advantage. Aetna’s current Medicare Advantage footprint covers approximately 45% of the Medicare eligible population. The combined companies serve 4.4 million Medicare Advantage members, representing 8% of today’s 54 million Medicare beneficiaries, and will expand our geographic footprint to cover approximately 90% of the Medicare eligible population”
We think the deal will go through because there will still be plenty of competitors in each market
“On the regulatory approach, we’ve already filed our HSR. We’re starting to file in a number of states. We need 20 state approvals for Form As. We’ll file our S4 in the next couple of weeks. And so all of that, since the process is underway, we’ve engaged in conversations with insurance commissioners, with governors, with Washington, and we are most concerned about staying on our strategy, our point of view.
We’re doing deep analysis, even deeper than we did before the deal on a number of competitors by market the plans offered, the opportunity to divest. I think if you all do your homework like you have been on all of the competitors in each market and look at the markets where we may need to consider divestiture, there are plenty of competitors left in the market.
And so, I think our comfort is in the actual analysis at the end of the day, we will still be 8% of the overall Medicare market on a combined basis. We will be big in some markets where we may be have to divest. There will be plenty of competitors in each market.
And quite frankly, I think the bigger issue at the market level, where this analysis will occur, is the level of market share that the blues hold, which is really the dominant competitor in each market.”