Anthem: Deal needs to close by April 30, or Cigna may walk out next day

Indianapolis-based Anthem said its acquisition of Bloomfield, Conn.-based Cigna must close by April 30 or Cigna will walk out the next day, the Hartford Courant reported.

Last month the U.S. Department of Justice denied Anthem's ask for a speedy trial, which Anthem requested begin in October and close by the end of the year. The DOJ said one of its two lawsuits to block multibillion insurance mergers — one against Anthem and Cigna and another against Hartford, Conn.-based Aetna and Louisville, Ky.-based Humana — should begin Feb. 17. However, the judge has not chosen which one.  

Anthem said Tuesday even if its transaction is approved, it would need a few months to gain state approval before the expected April 30 termination date. Several states have paused their investigations in the wake of the DOJ's lawsuits, according to the report.

However, the DOJ filed a counter-argument saying the insurer is requesting a quick trial because it is on bad terms with Cigna, which may prelude to inefficiencies that could result from the merger.

Cigna has not said if it will terminate the agreement May 1, the Harford Courant reported. All parities in both cases are scheduled to meet with a judge in Washington Thursday.

More articles about payer issues:
How Aetna, Cigna, Humana and Anthem fared in Q2
Humana posts large profits despite 24% decline in commercial members
UnitedHealthcare pays out $148M in quality bonuses to 1.9k physicians

 

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