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Monday, Aug 8 2016

Full Issue

Judge Hands Off Anthem-Cigna Case In Order To Speed Process

Meanwhile, Cigna's CEO says he still supports the mega-merger but also talks about his Plan B -- stock buybacks or acquisitions -- if the deal comes undone,

Aetna and Anthem's multibillion-dollar health insurance mergers may be decided by year-end, after all. The federal judge overseeing the U.S. Justice Department's challenges to the deals has sent one case to another judge.U.S. District Judge John Bates said there was no way he could try and decide the cases against Aetna's $37 billion deal for Humana and Anthem's $53 billion acquisition of Cigna Corp. by their requested year-end deadline, returning the Anthem-Cigna case back to the federal court for reassignment. (Teichert, 8/5)

The judge overseeing two U.S. cases challenging mergers among four of the biggest health insurers gave up one, improving the odds for rulings on both tie-ups by the end of the year and reducing the chance they fall apart beforehand.U.S. District Judge John Bates in Washington said Friday he would keep the case against聽Aetna Inc.鈥檚 deal for Humana Inc., leaving the challenge to Anthem Inc.鈥檚 takeover of Cigna Corp. to another judge. (McLaughlin and Harris, 8/5)

Cigna Corp. Chief Executive Officer David Cordani faces a tough task: persuading investors and lawyers that the health insurer is committed to a troubled $48 billion takeover by Anthem Inc., while also talking up its prospects as an independent company.Cigna met with investors聽this week to discuss the merger, which Cordani says he still supports, and also talk about his Plan B -- stock buybacks or acquisitions if the deal falls apart, according to notes to investors from Wolfe Research and Goldman Sachs Group Inc. (Tracer, 8/6)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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