California Regulator Slams Anthem-Cigna Deal, Calls On U.S. To Block Merger
California Insurance Commissioner Dave Jones says the deal would likely result in higher costs for consumers and businesses, fewer choices for coverage and lower quality of care. His recommendation cannot derail the deal, but it could influence the U.S. Department of Justice's decision.
Reuters:
California Insurance Commissioner Urges U.S. To Block Anthem-Cigna Deal
California's insurance commissioner on Thursday urged the U.S. Department of Justice to block health insurer Anthem Inc's acquisition of Cigna Corp, saying he is concerned it will raise premiums in the state. Dave Jones, who as insurance commissioner in California does not have authority to approve the deal, said he believes his recommendation will hold weight with U.S. antitrust regulators examining the acquisition. (Humer and Bartz, 6/16)
Los Angeles Times:
California Regulator Asks U.S. To Block Anthem-Cigna Deal
“When it comes to the Anthem and Cigna merger, bigger is not better for California’s consumers,” said Insurance Commissioner Dave Jones. Jones does not have the authority to block the merger. But he said he had reviewed evidence presented at a March 29 hearing, as well as studies of past mergers, and concluded that the deal was “anti-competitive.” Anthem is now the nation’s second-largest insurer, while Cigna is No. 4. If combined, Jones said, the resulting company would control more than half the insurance market in 28 California counties. (Petersen, 6/16)
Modern Healthcare:
California Blasts Anthem-Cigna Merger, Calls On Feds To Block It
In a 22-page letter to top Justice Department leaders, Jones said the “most extreme” example of where Anthem's deal would lessen competition is the self-insured employer market. Anthem and Cigna control a combined 61% of that market. Many large, self-insured companies have expressed similar concerns over Anthem's acquisition. (Herman, 6/16)
Bloomberg:
California Regulator Tells U.S. To Block Anthem-Cigna Deal
The takeover would give the combined Anthem-Cigna a greater than 50 percent market share in 28 counties in California, and a market share exceeding 40 percent in 38 counties, Jones said. (Tracer, 6/16)
California Healthline:
California Insurance Commissioner Urges Feds To Block $54 Billion Anthem-Cigna Deal
Anthem criticized Jones’ decision and expressed confidence it would obtain the necessary government approval for the merger. “We do not believe that the California Department of Insurance’s opinion is based on the true merits of this transaction,” Anthem said in a statement. “We are confident that the highly complementary nature and limited overlap of our organizations that will benefit the complex and competitive health insurance markets will be reviewed on the facts by the Department of Justice and appropriate state authorities.” (Terhune, 6/16)
San Francisco Business Times:
Insurance Commissioner Asks Justice Department To Block Anthem-Cigna Deal
Dave Jones, California's insurance commissioner, is urging the U.S. Department of Justice to block the blockbuster acquisition by Anthem Inc. of Cigna Corp., the nation's second- and fourth-largest health insurers. (Rauber, 6/16)