AMA: Giant Mergers Are Big Deal for Physicians and Patients CHICAGO, Oct. 27 /PRNewswire/ -- The following statement is attributable to: Donald J. Palmisano, M.D., J.D., AMA President: "The American Medical Association (AMA) is alarmed about the announced acquisition of the WellPoint Health Networks, Inc., by Anthem, Inc. The proposed merger will create a giant company on a scale not seen in an industry where competition has already been dramatically reduced. "The model of a traditional not-for-profit health plan, which operated for the benefit of the community, seems to be disappearing. Since abandoning their not-for-profit missions and converting to publicly-traded for-profit entities, WellPoint and Anthem have both engaged in acquisition sprees designed to conquer markets and dominate the industry. This strategy has culminated in today's acquisition that will create the nation's single largest health insurer, covering 26 million Americans in 19 states. "The AMA is also concerned about the recent announcement that UnitedHealth Group is acquiring Mid Atlantic Medical Services Inc., (MAMSI), an acquisition that will give United over 20 million enrollees across the country. "As a result of the proposed acquisitions announced today, United and Anthem will control over a quarter of the nation's health insurance market. In one day, these two health insurance giants have announced spending almost $19 billion to control a bigger piece of the health insurance pie. Ironically, these expenditures come at a time when insurance premiums are rising, adding to the number of uninsured. "The announcement of these two mergers on the same day should raise concerns that the country is headed toward a health care system dominated by a few publicly-traded companies that operate primarily in the interest of shareholders. For quite some time, the AMA has urged federal regulators to seriously examine consolidations in the health insurance industry. These mergers should be highly scrutinized to ensure they are in the best interest of our patients. The health insurance industry should receive no favoritism as it marches toward domination by a few Goliaths." DATASOURCE: American Medical Association CONTACT: Robert J. Mills, American Medical Association Media Relations, +1-312-464-5970 Web site: http://www.ama-assn.org/

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