(Reuters)—California’s insurance commissioner on Thursday urged the U.S. Department of Justice (DOJ) to block health insurer Anthem Inc.’s acquisition of Cigna Corp., saying he is concerned it will raise premiums in the state. Dave Jones, who as insurance commissioner in California does not have authority to approve the deal, says he believes his recommendation will…
Doubts Mount over Merger of Health Insurers Anthem, Cigna
(Reuters)—Wall Street expressed growing doubts about a pending $54 billion merger of U.S. health insurers Anthem Inc. and Cigna Corp. on Monday as news of management squabbles added to concerns over its review by antitrust regulators. Cigna shares closed down 4% at $126.15, well below Anthem’s original $188 per share offer of cash and stock…
Anthem CEO Backs Obamacare Insurance Exchanges & Sees Possible Growth
(Reuters)—Health insurer Anthem Inc. on Wednesday said the Obamacare individual insurance exchanges are not as profitable as it originally expected, but it is not planning to exit like competitor UnitedHealth Group. Anthem Chief Executive Officer Joseph Swedish said the company had picked up more exchange customers than it expected during the first quarter and that…
Health Insurer Anthem Sues Express Scripts over Drug Pricing
(Reuters)—Health insurer Anthem Inc. said it had sued pharmacy benefit manager Express Scripts Holding Co. to recover damages from drug pricing it believes was too high. The lawsuit, filed on Monday in U.S. District Court for the Southern District of New York, is the latest development in a month’s long dispute over Anthem’s contract with…
U.S. Hospital Group Warns of Blue Cross Dominance if Anthem Buys Cigna
(Reuters)—The American Hospital Association warned U.S. antitrust regulators that Anthem Inc.’s proposed acquisition of Cigna Corp. will hurt other health insurers’ ability to compete with Blue Cross Blue Shield plans, leading to higher premiums for consumers. Anthem, the country’s second-largest health insurer, runs Blue Cross Blue Shield plans in 14 states. The hospital group, in…
Anthem Targets $3 Billion in Drug Cost Cavings with Express Scripts
(Reuters)—Anthem Inc. could save $3 billion annually on drug costs from a re-pricing provision in its current contract with pharmacy benefits manager Express Scripts Holding Co, the health insurer’s chief executive officer said Tuesday. Anthem said it is working to renegotiate the contract this year to avoid overpaying for pharmaceuticals based on current market conditions….
U.S. Antitrust Lawmakers Express Concern About Insurance Mergers
WASHINGTON (Reuters)—Republican and Democratic lawmakers expressed concern about two multi-billion dollar insurance mergers on Tuesday, using a Senate hearing to take issue with the companies’ arguments that they face expanding competition from new rivals. Sen. Mike Lee (R-UT), who chairs the Senate Judiciary Committee’s antitrust subcommittee, said he was worried that consumers would be “locked…
Anthem to Buy Cigna to Create Biggest U.S. Health Insurer
(Reuters)—Anthem Inc. said on Friday it would buy Cigna Corp. in a deal valued at $54.2 billion, creating the largest U.S. health insurer by membership. The deal—the biggest ever in the health insurance industry—comes three weeks after Aetna Inc agreed to buy Humana Inc for $37 billion and is part of an industry-wide consolidation following…