Federal Judge Rules in Favor of Attorney General Cynthia H. Coffman and Blocks Anthem and Cigna Merger
A Federal judge has blocked health insurer Anthem, Inc.’s $54 billion acquisition of rival insurer Cigna Corp. in a merger challenge filed by the United States Department of Justice, Colorado Attorney General Cynthia Coffman, ten other states and the District of Columbia.
The decision by Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia concluded that Anthem’s acquisition of Cigna would violate federal antitrust laws. In blocking the merger, the court ruled that the proposed merger is likely to substantially lessen competition and impact consumer choice in the sale of health insurance to “national accounts” – customers with more than 5000 employees, usually spread over at least two states – within the fourteen states where Anthem operates, including Colorado. The court’s order will also preserve competition in 35 regional markets where both companies operate.
“Health insurance competition is an inherently local concern,” said Attorney General Coffman. “Colorado residents, businesses, health care providers, and third party payors all have a vested interest in ensuring that the quality, quantity, and price of health care services remains competitive. Today we have successfully maintained that vital competition.”