After Nearly Two Years Of Bitter Battle Following Their Failed Merger, Cigna And Anthem Await Judge’s Decision
There's billions of dollars at stake, with each company having "shot for the moon" in their damages requests. The court proceedings peeled back the curtain on large-scale mergers in the health industry, and aired a lot of dirty laundry along the way. In other health industry news: dental insurance, profit reports and federal tax refunds.
The CT Mirror:
Cigna, Anthem, Await Multi-Billion-Dollar Decision After Bitter Court Fight
Cigna and Anthem have battled for nearly two years, each seeking billions of dollars in damages in a bitter breakup after a failed merger. Now a chancery court judge in Delaware is about to decide who walks away with the money. That decision by Delaware Chancery Court Judge Travis Laster is expected to roil the industry and could have a huge impact on Bloomfield-based Cigna, which could either receive a windfall as large as $16 billion or be required to pay Anthem, based in Indianapolis, Ind. as much as $20 billion. (Radelat, 3/14)
The Associated Press:
No Dental Insurance? Discount Plans Can Provide Savings
No dental insurance? You're not alone. Roughly 1 in 4 Americans don't have dental coverage, according to industry figures. Employers are by far the biggest provider of dental benefits in the U.S., accounting for nearly half of all enrollees, followed by the government's Medicaid plan for low-income people. Researchers have shown that costs are a bigger obstacle to dental care in the U.S. than all other forms of health care. (3/13)
Modern Healthcare:
Trinity Health Reports Net Loss In Latter Half Of 2018
The equities market downturn at the end of 2018 pulled Trinity Health into net loss territory in the latter half of the year, compared with more than $800 million in net income in the prior-year period. The Livonia, Mich.-based health system weathered a $426.7 million investment loss in the six months ended Dec. 31, 2018—the first half of its fiscal 2019—compared with a gain of $478.6 million in the prior-year period. That led to $301.5 million in expenses over revenue in the six-month period, a significant swing from $806.4 million in revenue over expenses in the prior-year period. (Bannow, 3/13)
The Hill:
Blue Cross, Blue Shield Operator Did Not Pay Federal Taxes In 2018, Got $1.7B Refund
Health Care Service Corp., which operates Blue Cross and Blue Shield plans in a handful of states, did not pay any federal taxes in 2018 and received a $1.7 billion tax refund, according to its latest financial report. The tax refund boosted the health insurance conglomerate's net profit to $4.1 billion last year, which compares to $1.3 billion in 2017, according to Axios, which first reported about Health Care Service's tax refund. (Mills Rodrigo, 3/11)
