Morning Briefing
Summaries of health policy coverage from major news organizations
Anthem, Cigna Are Sniping Over Merger Breach, Justice Department Alleges In Court Filing
Anthem Inc. and Cigna Corp. have accused one another of violating the terms of their merger agreement, according to a legal filing by the Justice Department, which is suing to block the health-insurance deal on antitrust grounds. In the filing, Justice attorneys say that in a telephone conference on Aug. 16, Cigna’s lawyers disclosed “further deterioration” in the relationship between the two companies, which have for months been engaged in behind-the-scenes sniping amid efforts to pull together their $48 billion deal. (Wilde Mathews and Kendall, 9/21)
A lawyer for Cigna said during a teleconference last month that in-house attorneys for the companies had exchanged letters alleging each violated the deal’s terms, the government said in the filing Wednesday in Washington. The Justice Department raised the issue as part of a dispute over evidence in its lawsuit against the insurers seeking to stop their merger. (McLaughlin, 9/21)
The federal government, which sued to block the deal in July on antitrust grounds, submitted its latest filing with the hope of receiving all relevant documents between Anthem and Cigna. DOJ attorneys believe the “adversarial communications” contradict Anthem's argument that the transaction will create efficiencies and instead will lead to a messy integration. (Herman, 9/21)
And the American Medical Association is also weighing in on the proposed Anthem-Cigna merger and one other possible merger —
The American Medical Association, strongly opposed to the merger of Anthem and Cigna, said in a report Wednesday that the deal would greatly limit competition for private health insurance in Connecticut and nine other states, leading to premium increases and fewer choices of doctors and hospitals for the state’s patients. In another four states, Ohio, New York, California and Wisconsin, the impact of the proposed merger, which has been opposed by the Justice Department, would have a lesser impact but still “poses significant competitiveness concerns,” the AMA said. (Radelat, 9/21)
A merger between insurance giants Aetna and Humana could threaten the quality and affordability of health care in Illinois and 14 other states, according to an American Medical Association analysis released Wednesday. Aetna and Humana say they want to combine to offer better access to higher quality affordable care. But the Chicago-based AMA has been a vocal opponent of the deal, arguing it will lead to less competition among insurers and, in turn, fewer choices for consumers, at higher costs. (Schencker, 9/21)
