The U.S. Court of Appeals for the D.C. Circuit, in a split decision issued Friday, upheld a lower court's ruling that had blocked a proposed $54 billion merger of Anthem Inc. and Cigna Corp., two of the largest health insurers in the U.S. The U.S. District Court ruled in February that the proposed deal combining the two insurers should not be allowed because it would lead to higher prices for consumers, as VMail reported .
President Barack Obama met with top executives from more than a dozen health insurers, including Humana Inc. and Cigna Corp., to re-affirm his support for the Affordable Care Act after several companies retreated from the law's government-run insurance markets. Obama dropped in on a meeting on Monday in Washington between top White House health officials and the executives before the 2017 enrollment period, according to a White House official.
As questions grow about Anthem's proposed acquisition of Cigna, the Indianapolis-based company says the completion of the deal remains "the highest priority." "Anthem and Cigna are not in discussions regarding a termination of the merger agreement or the payment of a break-up fee," said Anthem spokeswoman Jill Belcher.
U.S. antitrust regulators are concerned about health insurer Anthem Inc's proposed acquisition of Cigna Corp and not sure the companies can offer enough concessions to maintain competition in the industry, the Wall Street Journal reported on Sunday. The office building of health insurer Anthem is seen in Los Angeles, California February 5, 2015.
California's insurance commissioner called on the U.S. government to block Anthem Inc.'s $48 billion takeover of rival health insurer Cigna Corp., saying the deal would limit competition in the state's health-insurance market.
California Insurance Commissioner Dave Jones is urging the U.S. Department of Justice to reject Anthem Inc.'s proposed acquisition of rival insurer Cigna Corp. He says the $54 billion transaction would likely lead to lower quality health care and more expensive coverage. He says Anthem would control more than half the health insurance market in 28 counties.