As Anthem surges forward with efforts to salvage its proposed $54 billion merger with Cigna, several obstacles may hinder the Indianapolis-based insurer from successfully completing the merger.
Here are four hurdles Anthem faces, according to a report from The CT Mirror.
1. While the U.S. Court of Appeals for the District of Columbia expedited Anthem's appeal of a district court's order to block its transaction with Bloomfield, Conn.-based Cigna on Feb. 17, Anthem will need to convince the appeals court the obstruction was a mistake. Anthem spokesperson Jill Belcher told the CT Mirror Anthem will continue to argue that the transaction will save consumers money and improve the health of Americans. Oral arguments for the case are scheduled to take place March 24.
2. A change to Justice Department lawyers under the Trump administration may give the payers another chance to argue their case, according to the report. Although a settlement between Anthem and the Trump Justice Department is possible, Thomas Greaney, co-director of the Center for Health Law Studies at St. Louis University School of Law, told the CT Mirror he thinks it is unlikely.
3. Cigna has said it is nearly impossible for Anthem to remove all of the obstacles preventing the two insurers from merging before the April 30 deadline, according to the report. For instance, the co-plaintiffs — made up of 11 states and the District of Columbia — in the Justice Department's lawsuit against Anthem could still fight the deal according to each state's antitrust law.
4. In addition, a handful of key state insurance regulators are still on the fence about approving the merger, according to the report.