Judge Amy Jackson said the trial would likely start in mid to late November. Anthem said it needed a year-end decision so it would have time to get state regulatory approvals by the merger deadline of April 30.
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The Justice Department sued last month on antitrust grounds to block the proposed Anthem-Cigna deal, as well as a second major health-insurance merger that would combine Aetna Inc.
The judge overseeing the U.S. Justice Department’s bid to stop health insurer Anthem (ANTM.N) from merging with competitor Cigna (CI.N) said on Friday her goal was to have a ruling by the end of January, later than the December 30 date sought by Anthem. Anthem has said failure to meet the April deadline could prompt Cigna to pull out.
Anthem lawyer Curran said the company “stands ready” to discuss a settlement.
“We’re always willing to hear any proposals the defendants have”, Jon Jacobs, a lawyer for the Justice Department, said at a court hearing on Friday in Washington.
In a note to investors, analyst Ana Gupte of Leerink Partners said the Justice Department’s offer to hear settlement proposals “is clearly a surprise”. The investment bank along with the entire Wall Street believe that the possibility of a successful settlement is less than 25%. Anthem lawyer Christopher Curran told Jackson the deadline is “fixed”.
The companies have until April 30 to complete the deal. This argument does not refute the Justice Department’s concerns that insurance mergers would reduce competition, but makes the case that it is actually an advantage in pressuring hospitals to compete on cost, the article says.
The case is U.S. v. Anthem Inc., 16-cv-1493, U.S. District Court, District of Columbia (Washington).
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