Cigna

Friday marked the official end to Indianapolis-based Anthem’s bid to merge with Cigna, and the second time in recent months a major health insurance merger has failed.

It underscores the uphill regulatory battle that big health insurers face in trying to join forces.

Anti-trust officials blocked mergers between Humana and Aetna, and Anthem and Cigna this year. Those four have something in common: they’re among their industry’s biggest, top-earning companies.

A merger between Indianapolis-based Anthem and fellow health insurance giant Cigna is officially dead – and Anthem says it won’t pay Cigna a break-up fee.

Anthem killed the $54 billion deal Friday after a failed bid to keep Delaware-based Cigna at the bargaining table.

Matt Chaney / https://www.flickr.com/photos/vcucns/

Just days after a federal judge shut down a $54 billion merger between health insurers Anthem and Cigna on anti-competitive grounds, a Valentine’s Day move by Connecticut’s Cigna seeks to dump the Indianapolis-based company once and for all.

 

Cigna officials announced Tuesday they had sued Anthem in a Delaware court seeking a judge’s affirmation that the company had lawfully ducked out of the merger agreement, and that Anthem couldn’t extend the merger’s expiration date.

 

Jim Grey / https://www.flickr.com/photos/mobilene/

If Indianapolis-based insurance company Anthem wants to appeal a federal judge’s decision scrapping the company’s upcoming merger with fellow insurer Cigna, it may have a short time window in which to do so.

While the U.S. Justice Department’s suit contained many anti-competitive claims against the merger, Wednesday’s decision only concerns competition in one market — big companies with more than 5,000 employees. In this market, health insurers often offer so-called “Administrative Services Only” contracts, with the companies paying for actual services themselves.

Anthem-Cigna Merger Deadline Extended Three Months

Jan 19, 2017
Matthew Hurst / https://www.flickr.com/photos/skewgee/2463077387

In light of the ongoing antitrust trial playing out in Washington, Indianapolis-based health insurer Anthem has extended the deadline to complete a merger with Connecticut-based Cigna until April 30th, according to a form filed this week to the Securities and Exchange Commission.

The merger between the two healthcare giants originally had a deadline of January 31st. However, the agreement left the door open to extending it three more months.

Matthew Hurst / https://www.flickr.com/photos/skewgee/2463077387

The first half of the federal trial challenging the planned merger between insurance giants Anthem and Cigna ended Friday, and a federal judge could rule in the next two weeks.

The Department of Justice sued to block the merger between the two companies, arguing consolidating two of the country’s so-called “Big Five” insurers would tamp down on competition and result in fewer options and higher costs for consumers.

Matthew Hurst / https://www.flickr.com/photos/skewgee/2463077387

Two giant mergers among the nation’s five largest health insurers, including Indianapolis-based Anthem, were put on hold Thursday by the U.S. Justice Department, which cited concerns about the so-called “Big Five” becoming the “Big Three.”

Andrew Malone / https://www.flickr.com/photos/andrewmalone/2290120626

An Indiana University health policy expert says insurance companies might deal a big blow to Obamacare.

Last week, UnitedHealth Group, the nation's largest health insurer, said it might withdraw from the Affordable Care Act's health exchanges after next year if it was unable to turn around what it calls huge financial losses.

While state and federal exchanges only make up a small percentage of the company's business, United says it will lose $700-million on them this year and next.

Matthew Hurst / https://www.flickr.com/photos/skewgee/2463077387

Executives with Indianapolis-based Anthem have given their first interviews about the deal that will make the health insurance company the largest in America, following a $54 billion deal to merge with rival company Cigna.

The companies announced the agreement Friday morning, after a year of sometimes-contentious negotiations. The purchase price represents about $34 a share above Connecticut-based Cigna's current value.

Anthem says the merger will allow the combined company to save $2 billion in operating costs while reining in the costs of care.

Purdue University

Purdue is changing administrators for employee health insurance. The Board of Trustees approved a three year, $4.95 million contract with Anthem. It takes affect January 1, 2014, and is expected to save the university $7.5 million annually, system-wide.

Vice President for Human Resources Luis Lewin says Anthem has a more extensive network of providers with better negotiated network prices. Cigna is the university’s current health plan administrator.