Virginia Bureau of Insurance Issues Report Recommending Against Anthem-Cigna Merger
On Wednesday, July 27th, the Virginia Bureau of Insurance issued a 97-page report recommending that the Anthem-Cigna merger not be approved. The Virginia State Corporation Commission, which is responsible for disapproving or approving the merger, will take this report into consideration and make its decision soon. The Bureau analyzed the merger and determined that it will significantly impact competition at the state and local level for the large group health insurance market
Anthem Accuses DOJ of Delays and Wasting Time, Facts Paint Different Picture
This week, Anthem filed a motion seeking an expedited status conference on logistics and expressing its wishes that the trial begin in October. In response the Department of Justice filed a response objecting to Anthem’s timing, stating that 1) the large scale of the merger the involvement of national and local markets requires a longer schedule, and 2) that a rush is unnecessary because the merging parties can postpone contractual break up dates and several state Insurance C
Consumer Advocates Aren't Fooled. The Anthem-Cigna Merger Will Harm Consumers, Not Help Them.
In their recent ad in the Washington Post, Anthem claims that its merger with Cigna is good for consumers and should be allowed to proceed. However, the evidence overwhelmingly shows that Anthem is wrong and this merger will result in lots of harm to consumers, as demonstrated by comments from California consumer advocates. Health Access California, a statewide consumer advocacy organization, stated that health insurance mergers almost always lead to higher premiums, that "An
Anthem Asks for Expedited Status Conference On Merger With Cigna
The battle over the mergers now shifts to the courts. Just yesterday Anthem filed a motion requesting an expedited status conference regarding its proposed merger with Cigna. In the motion, it stated that because of deadlines in its merger agreement and the need to gain approval for various State Insurance Commissioners, the company wanted to quickly address the timing for trial and other matters. Anthem is also seeking that the trial be conducted within 88 days of filing. Th
Consumers Should Not Be On the Hook for Merger Breakup Fees
The Anthem-Cigna and Aetna-Humana mergers are worth an immense amount of money. Aetna’s attempt to purchase Humana is valued at $37 billion, and Anthem’s proposed acquisition of Cigna is valued at $53 billion. Yet relatively little attention has been paid to another aspect of the mergers—the breakup fees that the companies must pay if the deals are scuttled, and how they will impact consumers. Anthem and Aetna are required to pay large breakup fees if the mergers are blocked
Connecticut, Georgia Insurance Commissioners Halt Reviews of Health Insurance Mergers
The Georgia Office of Insurance and Safety Fire Commissioner and the Connecticut Department of Insurance halted their review of the health insurance mergers after the Department of Justice filed suit to block both mergers over anticompetitive concerns. In two complaints, DOJ declared that the mergers would reduce competition, raise premiums for consumers, and stifle innovation by reducing the number of large national insurers from five to three. Georgia insurance officials we
Justice Department and State Attorneys General Sue to Block Anthem’s Acquisition of Cigna, Aetna’s A
The Justice Department and State Attorneys General from multiple states and the District of Columbia sued today to block Anthem’s proposed acquisition of Cigna and Aetna’s proposed acquisition of Humana. They stated that these mergers, valued at $54 billion and $37 billion, would increase concentration and harm competition and consumers across the country. Eleven states and the District of Columbia joined the challenge to the Anthem-Cigna merger, and eight states and the Dist
Department of Justice Will Likely Seek to Block Anthem-Cigna, Aetna-Humana Mergers
The Department of Justice is allegedly preparing lawsuits to block the proposed health insurance mergers of Anthem and Cigna and Aetna and Humana, according to multiple sources and news reports. Antitrust officials believe that Anthem’s $48 billion acquisition of Cigna and Aetna’s $37 billion acquisition of Humana will greatly harm competition. Offers by the companies to sell assets are unlikely to persuade the officials otherwise. The sources spoke on the condition of anonym
Past Is Prologue: What Previous Health Insurance Mergers Can Teach Us
As the Department of Justice, State Attorneys General, and State Insurance Commissioners review the Anthem-Cigna and Aetna-Humana mergers, they can learn from previous health insurance mergers and their effects on competition and consumers. Despite numerous conduct remedies and divestitures, past mergers between health insurers ultimately led to higher prices for consumers and less competition. To give just a few examples: In 1999, Aetna merged with Prudential and was requir
Mergers Will Threaten Both Competition and Health Care Progress
The Anthem-Cigna and Aetna-Humana mergers are currently in trouble because they will harm competition in health insurance markets across the nation and negatively impact consumers. Despite Herculean efforts by the merging companies, they have been unable to successfully rebut these facts. However, these proposed acquisitions will not only harm competition and consumers, but also threaten the progress in health care that has taken place over the past few years. The Affordable
