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It’s appearing less likely with each passing day that either the $48 billion Anthem-Cigna merger or the $37 billion Aetna-Humana merger will happen.
Bloomberg and The New York Times yesterday both said the U.S. Justice Department is preparing lawsuits to block both deals, saying they would harm competition in the health insurance industry.
The lawsuits could be filed later this week or early next week. The companies involved will likely fight any government lawsuits that could mean months of litigation. Or they could walk away.
One interesting part of the Bloomberg article shows Aetna is further along in terms of state approvals and would be more likely to fight the government:
Aetna and Humana will probably fight any lawsuit in court, while Anthem and Cigna are less likely to litigate against the government, said Ana Gupte, an analyst at Leerink Partners…
In addition to the Justice Department’s antitrust division, state attorneys general also have raised concerns about the mergers and may join any Justice Department challenge, two people said.
The insurers need approval from state insurance regulators in addition to the Justice Department. Aetna has secured far more state approvals for its deal than Anthem has, according to analysts at Wells Fargo & Co. Aetna has gotten approvals from 18 of 20 states where regulatory sign-off is needed, while Anthem has regulatory approvals in just 10 of 24 states, analysts led by Peter Costa said in a July 14 research note.
With all I’ve read opposing them in the past few months I think both deals will be scuttled.
U.S. Said Readying Suits Against Anthem, Aetna Insurer Deals - Bloomberg
http://www.nytimes.com/2016/07/20/business/dealbook/anthem-cigna-aetna-humana-health-care-mergers.html?_r=0
Bloomberg and The New York Times yesterday both said the U.S. Justice Department is preparing lawsuits to block both deals, saying they would harm competition in the health insurance industry.
The lawsuits could be filed later this week or early next week. The companies involved will likely fight any government lawsuits that could mean months of litigation. Or they could walk away.
One interesting part of the Bloomberg article shows Aetna is further along in terms of state approvals and would be more likely to fight the government:
Aetna and Humana will probably fight any lawsuit in court, while Anthem and Cigna are less likely to litigate against the government, said Ana Gupte, an analyst at Leerink Partners…
In addition to the Justice Department’s antitrust division, state attorneys general also have raised concerns about the mergers and may join any Justice Department challenge, two people said.
The insurers need approval from state insurance regulators in addition to the Justice Department. Aetna has secured far more state approvals for its deal than Anthem has, according to analysts at Wells Fargo & Co. Aetna has gotten approvals from 18 of 20 states where regulatory sign-off is needed, while Anthem has regulatory approvals in just 10 of 24 states, analysts led by Peter Costa said in a July 14 research note.
With all I’ve read opposing them in the past few months I think both deals will be scuttled.
U.S. Said Readying Suits Against Anthem, Aetna Insurer Deals - Bloomberg
http://www.nytimes.com/2016/07/20/business/dealbook/anthem-cigna-aetna-humana-health-care-mergers.html?_r=0