Tuesday, 27 March 2007
Consumer Group Seeks To Stop UnitedHealth Group From Buying Sierra
Non-partisan advocacy group Consumers for Health Care Choices has sent a letter to U.S. Attorney General Alberto Gonzalez, calling on the Department of Justice to block the sale of Nevada’s Sierra Health Services to UnitedHealth Group. According to the advocacy group, the sale will limit patient choice for healthcare consumers in Nevada.
The American Medical Association has also issued a statement against the sale of Sierra, claiming that the result would be create an anti-competitive market for healthcare in Nevada.
“The proposed merger would have negative long-term consequences for patients, physicians, hospitals and employers,” said Dr. J. James Rohack, an AMA Board Member.
According to the AMA, the sale of Sierra would give UnitedHealth Group control of 78% of the HMO market in Nevada, and 95% of the HMO market in the greater Las Vegas metropolitan area.
“United’s near-monopoly in the HMO insurance market will deter competition and deny patients and employers a choice among HMO plans,” said Dr. Rohack.
UnitedHealth Group agreed earlier this month to buy Sierra Health Services for $2.6 billion. UnitedHealth Group currently owns several health services businesses, including insurance companies UnitedHealthcare, Golden Rule, and PacifiCare. Together, the UnitedHealth Group’s insurance plans cover over 18 million people.
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