U.S. District Judge Amy Berman Jackson ruled in favor of the Justice Department and stopped Indianapolis-based Anthem's proposed $54 billion acquisition of Bloomfield, Conn.-based Cigna Wednesday.
In a 12-page order, the judge said the deal would negatively affect consumers and hinder innovation. Additionally, Judge Jackson said disagreements between the insurers were the "elephant in the courtroom" that couldn't be ignored.
The decision arrived a few weeks after another judge sided with the DOJ in its antitrust case against Hartford, Conn.-based Aetna's proposed $37 billion acquisition of Louisville, Ky.-based Humana.
Here are five reactions from company officials, healthcare leaders and litigators regarding the judge's decision on the Anthem-Cigna case.
1. Anthem Chairman, President and CEO Joseph Swedish said in a statement Thursday the company "is significantly disappointed by the decision as combining Anthem and Cigna would [have] positively impact[ed] the health and well-being of millions of Americans — saving them more than $2 billion in medical costs annually." He added Anthem's "decision to acquire Cigna is grounded in our commitment to this goal and to leading our industry during this period of dynamic change."
Anthem said it will appeal the ruling.
2. Cigna said in a statement Thursday it "intends to carefully review the opinion and evaluate its options in accordance with the merger agreement."
3. Andrew Gurman, MD, President of the American Medical Association, applauded the decision. He said the "ruling is an important victory for consumers. Coupled with the recent court-imposed injunction on the Aetna-Humana merger, the rulings demonstrate the vital role the U.S. Department of Justice and state attorneys general have in protecting patients and physicians from harmful mergers that substantially lessen competition in highly concentrated health insurance markets."
He added the "AMA will continue to vigorously oppose any health insurer mergers that will reduce competition and negatively impact physician markets and the quality of patient care."
4. Matthew Cantor, partner at Constantine Cannon, told Becker's Hospital Review most investors and antitrust lawyers expected the decision, and he thinks there is a low chance the order will be reversed on appeal.
He added he doesn't think striking down the Anthem-Cigna and Aetna-Humana deals will end health insurance consolidation. He said "there [are] still going to be some transactions out there" and thinks "Humana in some way, shape or form will be at play, whether the Aetna deal closes with a new divesture plan or whether that deal breaks up and Cigna pursues Humana."
5. Randal Schultz, a partner at Lathrop & Gage and chair of the firm's healthcare strategic business planning practice group, told Becker's Hospital Review he also thinks there is "going to be another business strategy that the insurance companies are going to use to create their economies of scale and coordinate market share. That's logical. If you get a road block, you find another way to go around it."