The consumer watchdog regulator specifically determined that the proposed merger will likely lessen competition in:
- Managed Care Provider Organization (MCPO) services sold to Medicare Advantage Insurers
- Medicare Advantage plans sold to individual Medicare Advantage members
Additionally, the FTC concluded that the proposed merger will eliminate competition between UnitedHealth’s OptumCare and DaVita’s HCPNV, in the Las Vegas area. Therefore, resulting in an almost monopoly controlling 80 percent of the services market delivered by MCPOs to Medicare Advantage insurers.
The elimination of this competition will increase healthcare costs and decrease the quality of services in the affected area, according to the FTC.
Furthermore, the proposed merger will result to anticompetitive effects due to vertical integration of UnitedHealthcare, the leading Medicare Advantage insurer with a larger combined MCPO service provider in the Las Vegas area. It positions UnitedHealth to raise the cost of its MCPO services to competing Medicare Advantage insurers.
