Skip to main content

Why are the billionaires always laughing?

Because they know the corporate media will never call bullshit on their bullshit.

Why are the billionaires laughing?

It’s easy to laugh when the corporate press treats you as a glorious success instead of the epitome of a broken social order. They laugh because they know the corporate media prefers to fawn over them rather than hold them to account.

Today, we ask you to support our nonprofit journalism because we are not impressed by billionaires flying into space, their corporations despoiling our health and planet, or their vast fortunes safely concealed in tax havens across the globe. We are not laughing.

We are hard at work digging out the truth. Please support this independent journalism today by donating to our critical Fall Campaign. We cannot do it without you. Thank you. -- Craig Brown, Co-founder

Support Our Work -- Join the small group of generous readers who donate, keeping Common Dreams free for millions of people each year. Every donation—large or small—helps us bring you the news that matters.

Anthem's $54.2 billion purchase of Cigna is the largest merger the U.S. health insurance industry has ever seen. (Photo: Michael Conroy/Associated Press)

Healthcare 'Oligopoly Wave' Continues As Anthem Gobbles Cigna

Human rights campaigners say mega consolidation will erode healthcare access and hike prices, illustrating deep problems with for-profit model

Sarah Lazare

The health insurance giant Anthem announced Friday that it is buying its behemoth rival Cigna for $54.2 billion, launching the largest such merger the country has ever seen and reducing the number of major U.S. insurers to a paltry three.

Analysts and human rights campaigners warn that the move is poised to further slash access to healthcare and hike prices across the country, illustrating the problems with the for-profit model in terms of delivering vital services.

The mega deal comes less than a month after insurance giant Aetna acquired Humana for $37 billion, part of a nationwide push to consolidate in what the Wall Street Journal referred to earlier this year as an "oligopoly wave."

The Anthem and Cigna merger is expected to be finalized in 2016, after which the joint company will provide coverage for at least 53 million people.

Numerous studies show that insurance mergers lead to higher premiums, including a 2012 analysis of a 1999 merger between Aetna and Prudential, as well as a report released in February which showed having more, not less, insurers in the insurance marketplace established by the Affordable Care Act leads to lower premiums.

Moreover, the mergers are taking place in a country that already has a dismal record with providing real care. A report (pdf) released last year by the Commonwealth Fund finds that the U.S. healthcare system is already the most expensive in the world yet delivers the worse care among 11 industrialized nations.

Cait Vaughan, a Healthcare Is a Human Right organizer with the Southern Maine Workers' Center, told Common Dreams that Friday's merger underscores the fact that the Affordable Care Act model "is still a for-profit system that is not determined by our needs, but determined by the desires and profit margins of huge conglomerates."

Image from Maryland health care justice march in October 2013. (Photo: United Workers/flickr/cc)

Vaughan emphasized that, in today's "medical industrial complex," people are made "incredibly wealthy off of us being sick and limiting very basic access to healthcare while increasingly shrinking our ability to make choices." During a presidential campaign cycle where we are "hearing a lot about how rich people control policy and elections," Vaughan said that it is vital to talk about the control of the wealthy over one of the most basic human rights: healthcare.

Dr. David Himmelstein, co-founder of Physicians for a National Health Program, told Common Dreams that the wave of mergers will turn insurance giants into "essential monopolies" that make a significant profit from public tax dollars.

"Much of their revenue comes from the government that pays hundreds of billions annually in premiums for private 'Medicare Advantage' plans, Medicaid managed care plans, and much of the premiums for the private plans bought on [ACA] insurance exchanges," said Himmelstein. "Much of this money is wasted; Anthem and Cigna have overhead that’s nearly tenfold higher than traditional Medicare."

Human rights campaigners say that public dollars should not be used to enrich these giant companies, but rather, should go towards a universal, single-payer healthcare system in which the profit motive is cut out of the equation, and everyone is included.

But Brian Quinn, a law professor at Boston College, told the Washington Post that the frenzy of mergers could signal that the country is moving in the opposite direction: "It's a little ironic I suppose that—over time—we may find ourselves moving towards a single payer healthcare system, but rather than it being government run, it may well be a small number of private, highly-regulated insurance companies."

But analysts say that these companies, in fact, are not "highly regulated" at all.

"Just this month, the insurers' lobbying group hired as their new CEO Marilyn Tavenner, who as head of Medicare and Medicaid was responsible for regulating them until this spring," said Himmelstein. "These monopolies are lightly regulated, and have used their enormous financial and political clout to avoid real oversight."


Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.

This is the world we live in. This is the world we cover.

Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Simply Don't Exist.

Schumer Endorses 'Inspiring Community Leader' India Walton as Buffalo's Next Mayor

The U.S. Senate majority leader's move comes as some key New York Democrats refuse to back the democratic socialist.

Jessica Corbett ·


'Who Will You Throw Overboard?' Manchin Targeted for Trying to Sink Democratic Agenda

West Virginians gathered at the senator's yacht to demand that he stop blocking the "popular and needed" Build Back Better package.

Jessica Corbett ·


'We Shouldn't Do It at All': Manchin Admits He's the Enemy of Democrats' Ambitions

The right-wing West Virginia Democrat and fossil fuel investor has previously confessed his intent to quash his own party's sweeping $3.5 trillion Build Back Better package.

Brett Wilkins ·


After Getting 'Stealth Bailout' During Pandemic, US Corporations Try to Kill Proposed Tax Hikes

"When it's time to finally put workers first, big businesses are spending millions to maintain their advantage and preserve the status quo," said Kyle Herrig of Accountable.US.

Jessica Corbett ·


'Disgraceful': Just 9 Republicans Join With Dems to Hold Steve Bannon in Criminal Contempt

The vote "reveals just how far the Republican Party has fallen" since Trump took control as GOP's de facto leader, said one pro-democracy advocate.

Jon Queally ·

Support our work.

We are independent, non-profit, advertising-free and 100% reader supported.

Subscribe to our newsletter.

Quality journalism. Progressive values.
Direct to your inbox.

Subscribe to our Newsletter.


Common Dreams, Inc. Founded 1997. Registered 501(c3) Non-Profit | Privacy Policy
Common Dreams Logo