After 18 months of courtship and court cases, two massive deals that would have reshaped the U.S. health insurance industry have both been declared dead, blocked by judges who said they’d do unacceptable harm to competition in the industry.
Anthem Inc.’s proposed merger with Cigna Corp. would reduce health-care competition and raise costs for consumers, U.S. antitrust lawyers will argue Monday when the government goes to court to block the transaction.
President meets with top executives from more than a dozen health insurers, to re-affirm his support for the Affordable Care Act after several companies retreated from the law’s government-run insurance markets.
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, while also talking up its prospects as an independent company.
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.