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. If the Department of Justice’s argument — that the acquisition would limit national market competition and raise prices for consumers — proves convincing, Judge Jackson will bypass the second phase of the trial. The second phase, which concerns the deal’s effect on small market competition, is scheduled to begin Dec. 12.
During the first phase of the trial, court testimonies revealed Indianapolis-based Anthem and Bloomfield, Conn.-based Cigna hold several disagreements over their proposed deal. Testimonies from Anthem CEO Joseph Swedish and Cigna CEO David Cordani show Cigna officials questioned Anthem’s proposed strategy after acquiring Cigna. Additionally, Anthem officials attempted to push the deal forward unilaterally, as Cigna stopped working with Anthem on issues related to the proposed purchase.
However, Mr. Swedish said the disagreements will not halt the forward progression of the deal should the court rule in favor of the insurers, arguing the acquisition will make Anthem more innovative, efficient and curb costs.
More articles on payer issues:
The Ohio State University Wexner Medical Center joins Anthem BCBS network
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