DOJ witness argues Anthem-Cigna deal could impede competition in Connecticut

A U.S. Department of Justice witness argued Tuesday Connecticut is among the areas that would see a lack of competition in the health insurance market should Anthem's proposed $54 billion acquisition of Cigna succeed, Hartford Courant reports.

The antitrust trial in Washington, D.C., has entered its second stage. The first half of the trial focused on the transaction's effect on the national insurance market, including large employers with employees in several states. The second phase concerns the deal's effect on small market competition, which began Dec. 12. 

DOJ witness David Dranove, an Evanston, Ill.-based Northwestern University healthcare economics professor, said the transaction would raise prices and decrease the quality of care in several cities and states already facing limited insurer selection. Mr. Dranove argued against Anthem's claim that smaller insurers would maintain competition should Anthem and Cigna become one.

Indianapolis-based Anthem is Connecticut's largest payer, with Aetna and Cigna following, according to the report.   

Anthem-Cigna trial proceedings are slated to end Friday. 

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