The Department of Justice and attorneys general from 11 states and the District of Columbia recommended the U.S. Court of Appeals for the District of Columbia uphold the decision to block Anthem's $54 billion merger with Cigna, according to a brief filed Monday.
The appeals court has expedited Indianapolis-based Anthem's appeal of Judge Amy Berman Jackson's decision to block the deal. However, the 85-page DOJ brief states there is "overwhelming evidence — uncontested by Anthem on appeal" the merger would raise prices for consumers and impede innovation.
While Anthem has argued the merger should proceed to achieve $2.4 billion in medical cost savings for consumers, the DOJ and attorneys general said the insurer did not offer a "compelling" appeal against the court's conclusion the projected savings were unverifiable and not true efficiencies.
"At the end of the day, the $2.4 billion in medical cost savings are purely aspirational and cannot justify the proposed merger," the brief states.
Oral arguments for the appeal are scheduled for March 24, roughly one month before the insurers' April 30 merger agreement deadline.