Possible Collapse Of Anthem-Cigna Deal Could Create Opportunities For Smaller Health Plans
The Justice Department has expressed skepticism that the companies can properly address its competition concerns. But if the merger falls apart, the two may go after smaller companies. In other news, Connecticut's insurance commissioner is being urged to recuse herself from the review of the merger.
Bloomberg:
Anthem-Cigna Meltdown Might Spark Deals For Smaller Health Plans
A breakup of Anthem Inc.’s $48 billion bid for Cigna Corp., under scrutiny by U.S. antitrust regulators, could spark new deals for smaller health plans in a continued wave of industry consolidation. Smaller insurers could become targets for Cigna, including WellCare Health Plans Inc., Centene Corp. and Molina Healthcare Inc. Anthem, meanwhile, may chase after assets that might be sold by industry rivals Aetna Inc. and Humana Inc. as they seek approval for their $35 billion tie-up. (Tracer and McLaughlin, 6/30)
The CT Mirror:
Comptroller Says Wade Should Recuse Herself On Cigna Merger
Comptroller Kevin P. Lembo publicly urged Insurance Commissioner Katharine L. Wade on Thursday to recuse herself from Connecticut's review of the Anthem-Cigna merger, saying even a positive legal ruling from ethics officials would not overcome the appearance of a conflict of interest. "At present, I do not believe the current review process will ensure an unbiased decision based on the facts," Lembo told Wade in a letter released to reporters. "The strong ties between you as the regulatory authority and one of the merger applicants, combined with the secretive nature of the proceedings, at the very least, create the appearance of a favored outcome." (Pazniokas, 6/30)
Meanwhile, another suit adds to Anthem's legal troubles —
Kaiser Health News:
Anthem, Express Scripts Face Legal Challenge Over Prescription Drug Prices
Anthem and its pharmacy manager Express Scripts overcharged patients with job-based insurance for prescription drugs, alleges a lawsuit that seeks class action status for what could be tens of thousands of Americans. It’s the latest wrinkle in a battle that has already pitted the major national insurer and its pharmacy benefit manager (PBM) against each other in dueling legal actions — and further illustrates the complicated set of factors that determine what consumers pay for prescription medications. (Appleby, 7/1)
