Case Details

Year Initiated/Committed

2019

Year Resolved

2019

Settlement Amount

n/a

Court

District Court, County of El Paso, Colorado

Lead State

CO

Participating States

CO

Defendant(s)

UnitedHealth Group Inc.; DaVita Inc.

Case Description

UnitedHealth Group sought to acquire the physician practice group of DaVita Inc., which owned two large physician’s’groups in Colorado Springs. UnitedHealthcare is the largest provider of Medicare Advantage plans in the region. The FTC investigated the merger but did not take any action with respect to Colorado. The state filed a complaint in state court aleging that the transaction would give the combined parties the ability to raise their price to other insurance companies that serve Medicare Advantage patients in the Colorado Springs area. The state alleged that the merger would resultin “reduced competition, higher health care costs, reduced benefits and fewer choices for seniors.” The state reached a consent judgment with the parties, under which UnitedHealthcare will lift its exclusive contract with Centura Health for at least 3.5 years, which will expand the network of healthcare providers available to seniors in Medicare Advantage plans offered by other providers. In addition, DaVita Medical Group’s agreement with Humana—UnitedHealthcare’s main competitor in Colorado Springs—will be extended without change through at least the end of 2020 .