The United Auto Workers union and the Detroit automakers are discussing forming a giant purchasing group that would bring all their workers and retirees under the same umbrella when buying health care, promising to put downward pressure on the profits of the doctors and hospitals who serve them.
Already, medical care providers are bracing for unprecedented consolidation among the insurance companies who pay them with the proposed acquisition by Aetna AET -1.77% of Humana HUM -0.50% and the merger of Anthem WLP +% and Cigna CI -1.44%. Health plan consolidation is poised to reduce the number of publicly-traded insurance giants from five to three by late next year.
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