Healthcare Industry News > United Healthcare proposes purchase of Sierra Health Services

United Healthcare proposes purchase of Sierra Health Services

Concerns are being raised about the proposed purchase of Sierra Health Services by UnitedHealth Group.  The House of Representatives Committee on Small Business drafted a letter to the Justice Department saying the purchase would give UnitedHealth such a huge share of the market in Nevada that the results could be reduced services and access to health care for the state’s residents.

If the sale goes through UnitedHealth’s share of the HMO market in the state would increase from 12 to 80 percent while in Las Vegas the increase would go from 14 to 94 percent.  The head of the House committee is concerned that if the purchase goes through then similar actions could be taken all over the country.

UnitedHealth dispute the committee’s numbers.  They argue their share would only increase to 28 and 33%, respectively.  The company also has no plans to increase premiums as a result of the deal.  The company’s are also expected to maintain their own leadership and are not permitted to pass on the costs of the $2.6 billion purchase to their customers.

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