Benefit consultants and others had mixed views on what the mergers may mean for consumers. Savings from merging back-office efforts and eliminating some jobs could slow increases in premiums, which are currently rising at their fastest clip in a decade. The Anthem-WellPoint deal particularly may increase competition among large insurers eager to attract the business of large, multistate employers.
If the merger of two large health care providers could save increases in premiums by merging some operations and laying off staff, then it follows that a single health care provider could also save money. Strip out the advertising budget and the savings will increase.
Combine this with policies that restrict drug company advertising, expedite the process of bringing generic versions of off-patent drugs to market, negotiate drug-price controls in other countries, and control the costs of catastrophic medical care, and we might be able to afford health care for everyone while reining in overall costs to an acceptable percentage of GDP.