Representatives from the American Medical Association and the Medical Society of the State of New York urged New York state insurance regulators Thursday to block Anthem's proposed $54 billion acquisition of Cigna.
The physician organizations presented an AMA analysis of New York's commercial health insurance markets at a hearing before the New York State Department of Financial Services Thursday, saying the proposed transaction would "quash competition" in several state markets. Markets in Long Island would see Anthem's market power reach anticompetitive levels, and competition in New York City and Hudson Valley areas could be compromised, according to the organizations.
"Anthem has been unable to substantiate its claim that the merger would create efficiencies that would lower healthcare costs," Henry Allen, the AMA's top antitrust attorney, said. "In effect, the costly process of merging two giant insurance bureaucracies is born on the backs of patients and employers. Competition, not consolidation, is the right prescription for New York's health insurance markets."
The U.S. Department of Justice challenged Indianapolis-based Anthem's acquisition of Bloomfield, Conn.-based Cigna on July 21 over antitrust concerns. The trial date is set for Nov. 21.
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