Posted on March 24, 2010.
State of Health approves the sale of UnitedHealth Net The decision was sentenced Friday by the Medical Society of the State of Connecticut, who has expressed concern that the takeover is detrimental to competition and leave consumers of health care little protection.
In July, Health Net and UnitedHealth announced a deal worth over 500 million dollars. United confirmed that the agreement does not include the nearly 1,000 workers in Health Net Connecticut, with the majority in Shelton, but did not discuss potential job losses. United employs nearly 4,000 in the state.
One of the problems the medical society was raised Friday that the United is to buy the right but not the obligation, to re-enroll in Health Net's customer coverage UnitedHealthcare.
"United have slipped through the back door in an unprecedented operation by purchasing only the renewal fee of Health Net customers. We hope they will offer insurance to all current Health Net subscribers," said Matthew C. Katz, executive vice president of MSC. "Time will tell if the company uses its muscle to continue to increase contributions. Now they will not need permission to do so. By purchasing the rights to renew contracts, they can double their rates and choose at random commercial contracts, and there is not something state regulators can do about it. The Department of Insurance has made it clear that this decision by insurance companies in value compared to patients and physicians. "
"We appreciate the Connecticut Department of Insurance approved our application to acquire Health Net of Connecticut, confirming that the transaction meets all requirements of the regulatory state," Daryl Richards, Vice President Public Relations UnitedHealthcare in Hartford, said in a e-mail. "If fully approved by other states, we will work to ensure a smooth transition for members, physicians, hospitals and other health professionals. We look forward to advancing the health and well-being of members of Health Net through an affordable, quality health care options. "
The Insurance Department will require companies to file regularly for the next two years. Health Net is to hold accounts with its employees by 2010 under the terms of the acquisition, which will be completed later in 2010.