January 27, 2011

Tufts and Harvard merger?

According to the Boston Herald, Tufts and Harvard are in discussions to merge.  I am not surprised to see Harvard is merging, but I was thinking now that Eric had moved on to Harvard that he would gobble up Fallon.   Never really considered Harvard and Tufts merging. 

If that happens you will have two main players selling health insurance in Mass:
  1. Blue Cross
  2. Havard-Pilgrim-Tufts
Then a bunch of small players
  1. Neighborhood
  2. Fallon
  3. United
  4. CIGNA (over 50 markets)
Just do not see this good for businesses bying health insurance, although Harvard and Tufts will argue their merger will lower costs.  We need more competition, not less.  On the local front this is not good for Fallon at all, who is currently in a "struggling" phase.   Recent changes to Medicare has hurt them and now this.   Got to believe they would not mind merging with one of these two bigger players over the next 12 months. 

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