Health Plan Market Primed for Further Consolidation

Health insurers believe that going big will give them an advantage in the post-health system reform marketplace and expect to continue to consolidate beyond two major acquisitions announced this summer.

The result for physicians could be even less leverage in fee schedule negotiations and pressure to participate in health plans’ Medicaid managed care and Medicare Advantage networks to be part of commercial networks.

“Size is power,” said Stephen Monroe, managing editor at Irving Levin Associates, which publishes analysis and data on mergers and acquisitions.

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