Roy Poses has some interesting insights into the financial benefits and costs of the pending Pacificare-UnitedHealth merger in his blog Health Care Renewal. Dr Poses notes that two of the execs involved both make over a hundred million this year or will make it if this deal gets done.
He also highlights Dr. Alain Enthoven’s views on the deal, citing his credentials as a:
“charter member of the Jackson Hole group, and long-time advocate of managed competition… “I don’t see this as beneficial to California consumers or employers…I regard this as a loss and doubt there are any economies of scale to be achieved here.”
The LA Times quotes UHG CEO Bill McGuire on the business justification for the deal; “”There is not enough money
Jul
13
Why will this be so tough? Garamendi only rules over non-HMO insurers and neither Pacificare nor United has too much in that sphere. the Cal Dept of Managed Care is a push over and, even if it wasn’t, United is weak out here so it’s not a major change in the California market (same as was Anthem/Wellpoint). The only real way you could say it was anti-trust is as a national issue — and we all know that the Justice dept is a joke on that score.
So obviously McGuire deserves all his money… after all this is America. He wouldn’t get it if he didn’t deserve it, would he?