Morning Briefing
Summaries of health policy coverage from major news organizations
Anthem CEO: Despite 'Dynamic Tension' With Cigna, $48M Merger Deal On Track
Anthem Inc. Chief Executive Joseph R. Swedish acknowledged 鈥渄ynamic tension鈥 with Cigna Corp. over their $48 billion pending merger, but said the health insurers had resolved differences and are on track to receive regulatory approval. The Wall Street Journal had reported that Anthem and Cigna were privately sparring on several fronts as they work toward antitrust clearance, citing letters their executives exchanged as recently as this month. Speaking at an investor conference in New York, Mr. Swedish called the disputes 鈥渙ld news.鈥 He said the companies are working well together and have 鈥渧irtually met all the deadlines up to this point鈥 in the antitrust review by the Justice Department. (Hoffman and Wilde Mathews, 5/24)
Companies tend to break a few eggs when making a deal omelet, so investors probably shouldn鈥檛 fret too much about squabbling between Anthem and Cigna. It is the regulatory cook in the kitchen that is the bigger issue. Anthem and Cigna have bickered about a number of issues since agreeing to a deal last summer, raising fears the acquisition won鈥檛 close, The Wall Street Journal reported Monday. Anthem told investors Tuesday that isn鈥檛 likely to scuttle the deal, which it still expects will close sometime this year. (5/24)