Anthem on Monday, June 22, 2015 reaffirmed their commitment to buy rival Cigna a day after Cigna shot down the idea in a letter delivered to Anthems board.
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U.S. Attorney General Loretta Lynch announced the lawsuits, which aim to block deals between Aetna and Humana and Anthem and Cigna.
The Department of Justice said Thursday that the combinations of Aetna and Humana and Anthem and Cigna would hurt competition that restrains the price of coverage and lead to reduced benefits, among other drawbacks.
The big insurers argue that by getting larger they will be able to negotiate better prices with pharmaceutical companies, hospitals and doctor groups that also are growing. Several state attorneys general are named as plaintiffs in both suits.
“If allowed to proceed, this merger would enhance Aetna’s power to profit at the expense of seniors who rely on Medicare Advantage and individuals and families who rely on the public exchanges for affordable health insurance”, the lawsuit against Aetna says. It operates across the entire country and provides health insurance to 39 million people.
The companies announced today that they will fight the DOJ’s lawsuits in court in order to move ahead with their mergers, he explained.
In sharply worded statements on Thursday, officials from both Aetna and Anthem said they would fight in court to defend their planned mergers.
The AMA said combined company would control almost two-thirds of New Hampshire’s health insurance market, a figure so high that it is potentially in violation of federal antitrust guidelines.
Cigna, meanwhile, said it was “evaluating its option” and doesn’t believe the deal will close until 2017, “if at all”.
The four companies round out the Big Five health insurers nationally, with Minnetonka-based UnitedHealthcare the biggest of the bunch right now. Access to health insurance saves lives, improves health and reduces the cost of care for all Americans.
The administration has leaned heavily on insurers to help implement the 2010 health law, often called Obamacare.
Such a move would be a blow to the president’s state-focused Obamacare.
The two health insurers headquartered in metro Hartford, Aetna and Cigna, responded in sharply different tones.
For years, hospitals and physician practices have been merging around the country, creating increasingly concentrated markets dominated by one or a handful of huge medical systems. Humana is based in Louisville, where it employs about 12,500.
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Americans already pay the highest prices for their care in the world, surveys show. Many previously uninsured and underinsured individuals who are served by that market are especially at risk for increases in premiums, he said.
