Question

(CO B) In 2015, Anthem Blue Cross bid to acquire CIGNA in a $54 billion deal. If approved, this would have created the largest health insurer in the nation. What happened to this merger, and which government agencies got involved to oppose this merger?

Also in 2015, a second merger was a proposed between Aetna and Humana for $37 billion. What happened to this merger, and which government agencies got involved to oppose this merger?

Answer 1

Anthem Blue Cross bid to acquire CIGNA

Status: A federal judge ruled against Anthem's proposed merger to acquire CIGNA at $54 billion.

Government agency involved to oppose this merger:

1. U.S. Justice Department
2. Justice Department’s Antitrust Division

Reasons for the ruling: Merger would have worsened a highly concentrated market and is likely to raise prices of the drugs. This would lead to a lower competition and higher prices in the market.

Aetna and Humana merger

Status: Aetna and Humana called off their merger in February, 2017.

Government agency involved to oppose this merger:

1. U.S. President Obama's Justice Department

Reasons for the ruling: The merger would hurt competition in the health care market. This would lead to a high prices for Consumers and fewer services for Medicare patients.