Lungren Endorses HMO Merger Bill

Atty. Gen. Daniel Lungren announced his support for a state Senate bill that would strengthen the state’s oversight of HMO mergers. The pending bill, SB 330, is a response to several recent mergers between large health maintenance organizations, such as Health Net and Foundation Health. The mergers have prompted concerns among consumer advocates, employers and physicians about the potential for reduced competition and higher medical prices. The bill, authored by Sen. Herschel Rosenthal (D-Los Angeles), requires the attorney general to review HMO mergers to ensure they do not substantially lessen competition.