Overnight Healthcare: DOJ sues to block health mergers | Humana exiting many ObamaCare markets | States get $60M in Zika money

The Obama administration’s challenge of the Anthem-Cigna and Aetna-Humana mergers has finally arrived in federal court.

Attorney General Loretta Lynch announced the two lawsuits in a 30-minute press briefing Thursday morning, delivering an impassioned defense of competition in the healthcare marketplace.

{mosads}”Health insurance can mean the difference between life and death,” Lynch said. “If the big five were to become the big three, not only would the bank accounts of American people suffer, but the American people themselves.”

It’s a major antitrust move by an administration that has promised to step up the scrutiny over giant mergers with an impact on the public interest. Read our story here: http://bit.ly/2acafNR

Anthem, Aetna preparing for court battle

So far, three of the four companies have said they are willing to go to court. Cigna is still reviewing its options.

Anthem, which said it is “fully committed to challenging the DOJ’s decision in court,” also made clear that it’s open to a settlement.

The companies have both already tried to compromise with federal officials, promising to sell off parts of their businesses that raise antitrust concerns. But Lynch on Thursday rejected efforts already underway, calling the companies’ responses “inadequate and incomplete.” Read more here: http://bit.ly/29OXjPF

Meanwhile, AHIP plays blame game

America’s Health Insurance Plans released a statement Thursday looking to pivot from the anti-competitive accusations against its industry, and instead took aim at drugmakers and hospitals.

“Ultimately, the most pressing competition issues in healthcare today are the result of anti-competitive provider mergers and the soaring cost of pharmaceuticals driven in part by anti-competitive pricing tactics,” AHIP wrote in a statement.

A+ for timing, Humana

Humana, one of the nation’s top five health insurers, is pulling out of ObamaCare plans in all but a handful of states after reporting nearly $1 billion in losses.

The insurer will take part in “no more” than 11 state marketplaces, down from 19 last year. But the company says it is leaving “substantially all” marketplaces. Read more here: http://bit.ly/29YpWVC

Seriously, how did this person get Zika?

The Associated Press reported late Thursday that health officials have also ruled out sex as a mode of transmission in the high-profile Zika case in Florida. Health officials had already said the case appeared to be non-travel related, raising the prospects that it could be the nation’s first locally transmitted case of Zika. Read the developing story here: http://apne.ws/2agdB1L

More Zika money is out the door to states

The Centers for Disease Control and Prevention (CDC) announced Thursday it would be sending out $60 million to state and local health departments as they look to fight Zika.

That’s a big chunk of change out the door at a time when Republican lawmakers are accusing the Obama administration of sitting on its hands, or in this case, sitting on a pile of money.

The last grants from the CDC came to a grand total of $25 billion back on July 1.

The new grants are specifically intended for epidemiologic surveillance, mosquito control and monitoring, and lab capacity, the CDC said.

ON TAP TOMORROW

If you were in Cleveland, please go take a nap.

WHAT WE’RE READING

For every dollar spent on Medicare integrity efforts, about $12.40 was saved, according to a new federal report. (Modern Healthcare)

Some drugmakers are using the Republican convention to push lawmakers to lift a longstanding ban on Medicare paying for obesity medication. (Stat News)

Powerful national and state medical societies are pushing a Senate bill to exempt drug and device makers from reporting payments made to doctors for certain educational services. (Stat News)

IN THE STATES

Florida health officials are trapping and testing mosquitoes in the area where a woman tested positive for Zika that appears unrelated to travel. (Associated Press)

California is transforming its data-collection methods for its massive cancer database, reporting cancer diagnoses in close to real time. (Kaiser Health News)

Thousands of nurses picketed at Kaiser-Permanente hospitals around San Francisco over staffing concerns. (CBS Local)

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