Lawmakers want scrutiny of proposed UnitedHealth Group-Amedisys deal

Democratic lawmakers are asking the Federal Trade Commission and Justice Department to evaluate UnitedHealth Group's planned $3.3 billion acquisition of hospice and home healthcare provider Amedisys. 

Shareholders of the Baton Rouge, Louisiana-based Amedisys approved the deal last month, setting up what could be a lengthy governmental approval process. 

Related: Amedisys shareholders OK UnitedHealth Group deal

Sen. Elizabeth Warren (D-Mass.) and Rep. Pramila Jayapal (D-Wash.) want the federal agencies to "closely scrutinize" UnitedHealth Group's planned Amedisys purchase.

Calling it "the latest example of massive healthcare conglomerates using anti-competitive mergers to increase their market dominance," the lawmakers said in a letter to FTC Chair Lina Khan and Assistant Attorney General Jonathan Kanter that the deal is "clearly anticompetitive as it would result in consolidation of home health and hospice services in some regions."

They want the government to block any activity deemed to be in violation of antitrust laws.

UnitedHealth said in an August Securities and Exchange Commission filing that the Justice Department has asked for additional information about the would-be deal.

Requests from federal regulators tied up UnitedHealth's $5.4 billion acquisition of home health company LHC Group, which was stalled for several months by the FTC before it was allowed to go through earlier this year.

Amedisys has 532 locations in 37 states. LHC Group has 964 locations in 37 states. Warren and Jayapal note that Amedisys and LHC would have 172 overlapping facility areas if the deal is completed.

Representatives for UnitedHealth Group did not immediately comment on the lawmakers' letter to officials.

Jayapal and Warren said insurance giants are trying to dominate markets and avoid Affordable Care Act-mandated limits on profits by shifting income to subsidiaries that don't have the requirement to spend 85% of premium revenues on care.

Other insurance companies or parent corporations have ramped up expansion into the home healthcare market in recent years, including CVS Health's $8 billion purchase of Signify Health last March and the 2021 Humana takeover of Kindred at Home.