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U.S. antitrust officials are poised to file lawsuits to block Anthem Inc.’s takeover of rival health-insurer Cigna Corp. and Aetna Inc.’s deal to buy Humana Inc., according to a person familiar with the matter. Justice Department officials, who are responsible for protecting competition, are concerned that the deals, which would transform the health-insurance industry by turning its five biggest companies into three, would harm customers, according to several people familiar with the situation. (McLaughlin, 7/19)

Antitrust lawsuits against the planned mergers would be the culmination of concerns the Justice Department has had about the deals from the outset. During a yearlong review of the mergers, the department’s skepticism hasn’t subsided, people familiar with the matter said. (Kendall and Wilde Mathews, 7/19)

The proposed mergers would greatly reshape the health insurance landscape. The combination of Anthem with Cigna would create a powerful presence in the market to offer insurance administration to large employers. And Aetna’s combination with Humana threatened to further consolidate the market for private Medicare plans. (Picker and Abelson, 7/19)

Those involved in the deals have argued that the mergers would benefit consumers and shareholders, giving the companies more clout to drive better deals with hospitals and physician groups. But politicians, state regulators and the American Medical Association have raised questions about whether the deals would reduce competition and drive up costs for patients. (Merle and Johnson, 7/19)

In the event of a lawsuit, a federal judge would decide whether the mergers must be killed under antitrust provisions — and although there's no guarantee the Justice Department will prevail, corporations often choose to give up instead of waging an uncertain, lengthy and costly fight against the government. (Bomey, 7/19)

A decision whether to file the suits could come as early as this week, and the companies could fight in court or agree to settle, the reports said. A Justice Department spokesman declined to comment. Shares of the four companies fell 2% to 4% on Tuesday. (Puzzanghera, 7/19)

Antitrust observers and financial analysts have increasingly viewed the Anthem-Cigna deal as more difficult to complete because it would create a highly concentrated market for employer coverage. It's also unclear how Anthem would resolve issues with the Blue Cross and Blue Shield Association. [Analyst Ira] Gorsky believes Aetna's transaction with Humana is more likely to withstand federal pushback, as long as the insurer can prove selling some Medicare Advantage assets to another buyer appeases anti-competitive concerns. (Herman, 7/19)

Leerink Partners analyst Ana Gupte said in a research note that she expects the companies to fight the Department of Justice, but that Anthem's and Cigna's chances of success were slim. Indeed, a source familiar with the situation told Reuters earlier this month that Aetna was prepared to fight the Justice Department. (Humer, 7/19)

A report that the U.S. Department of Justice is readying legal challenges to sweeping insurance industry acquisitions involving Aetna and Cigna sparked a strong reaction from Wall Street and little comment from the companies involved. The report ... sent shares tumbling as investors speculated whether federal regulators would block the proposed $54 billion purchase of Cigna by Anthem and the proposed $37 billion acquisition of Humana by Aetna. (Singer and Blair, 7/19)