California AG: 19 AGs submit letter opposing insurance changes

California Attorney General Rob Bonta, alongside a coalition of 18 other state attorneys general, submitted a comment letter to the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) in response to proposed revisions to federal Merger Guidelines. The letter emphasizes concerns that weakening antitrust enforcement could exacerbate anti-competitive practices in healthcare and insurance markets, ultimately driving up costs for consumers and employers. The coalition commended the DOJ and FTC for efforts to strengthen merger enforcement but urged further action to address gaps in current policies that may enable excessive market consolidation.

The attorneys general highlighted past cases where unchecked mergers led to higher healthcare costs, including the successful challenge to the proposed Anthem-Cigna merger in 2016-2017, which would have created the largest health insurer in the U.S. According to the letter, this merger would have created the largest health insurer in the U.S. They also referenced ongoing efforts to block anticompetitive hospital acquisitions, such as the 2022 lawsuit against John Muir Health's proposed takeover of San Ramon Regional Medical Center, which threatened to reduce competition in an already concentrated market. The coalition noted that such actions could threaten market competition.

The letter advocates for stricter scrutiny of mergers that reduce competition, particularly in healthcare, where consolidation has been linked to price increases and reduced access to care. The coalition stressed that robust Merger Guidelines are critical to preserving market fairness and affordability, especially as private equity influence and pay-for-delay drug agreements continue to distort pricing. The submission argues that strong antitrust enforcement is essential to protect consumer welfare. The submission reflects broader state efforts to counter practices that prioritize corporate profits over consumer welfare in healthcare and insurance sectors.