Feds say health mergers would increase costs, threaten care

WASHINGTON, D.C. (AP) — The U.S. government is suing to stop two major health insurance mergers, a move regulators say is needed to protect Americans from potential cost hikes and lower quality care.

Prices for prescription drugs and care have risen, and as they have, insurers — who ultimately pay most of the bill — have raised premiums and out-of-pocket expenses like deductibles to shift more costs to consumers and help protect their own bottom lines.

In recent years insurers have invested in more elaborate technology to help customers find the most appropriate doctors and care providers and to help them take their medicines and manage their care, which can improve health and cut costs.

Regulators were worried about how the deals will affect competition in three areas in particular: coverage offered by large employers, insurance sold on the Affordable Care Act's public exchanges and Medicare Advantage plans, which are privately run versions of the government's Medicare program for the elderly.

Industry experts say any impact from the deals on consumers would take years to materialize and could lead to savings in some areas, along with the risk of higher costs elsewhere.