economy of size for Aetna/Humana merger might help pare the losses mounting up from an imbalance in the risk pool. sounds like Econ 1-2 to me.
Correct on the Econ part. But a merger is usually attractive where costs can be cut in overheads, competition is reduced and prices can be raised. If the product is still losing money at the point of sale, how do the numbers work to make a merger attractive? Two companies both losing money merge to lose less money? The government sets prices.
They are losing money in exchanges = get out of exchanges. Your right pretty simple.
Would have happened anyway. Aetna lost $200 million in the exchanges IN THE 2ND QUARTER ALONE. I’ve seen annual losses in excess of a billion for a single provider.
What I want to know is why aren’t these CEO’s being sued by their boards? Why hasn’t a US district... Strike that. We know the answer to that one.