The Virginia Bureau of Insurance advised a proposed merger between the state's largest insurer — Anthem — and Cigna be rejected.
In its 97-page analysis, the bureau wrote the deal would impact state and local competition in large group insurance markets. The bureau said regardless of "general claims of benefits and mitigating factors, the Bureau further has determined that this impact raises the potential of harm to policyholders as well as the general public."
The bureau released a report earlier this year determining Hartford, Conn.-based Aetna's proposed acquisition of Louisville, Ky.-based Humana would not negatively impact Virginia residents.
The Virginia State Corporation Committee, which has ultimate say if the merger will be approved in the state, will take the bureau's analysis of Anthem-Cigna into account when making its decision, the Richmond Times-Dispatch reported.
The U.S. Department of Justice sued to block the mergers of Indianapolis-based Anthem and Bloomfield, Conn.-based Cigna and Aetna and Humana in July. Both mergers need federal and state approval before they can close.
The bureau recommended the SCC give Anthem 30 days to respond to the report.
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