U.S. court blocks Anthem-Cigna merger, dealing blow to consolidation

[Zippyjuan]

http://www.reuters.com/article/us-ci...-idUSKBN15O02I

A federal judge on Wednesday ruled against U.S. health insurer Anthem Inc's (ANTM.N) proposed $54 billion merger with smaller rival Cigna Corp (CI.N), derailing an unprecedented effort to consolidate the country's health insurance industry.

The U.S. Justice Department sued in July to stop Anthem's purchase of Cigna, a deal that would have created the largest U.S. health insurer by membership, and Aetna Inc's (AET.N) planned $33 billion acquisition of Humana (HUM.N).

The merger would have worsened an already highly concentrated market and is likely to raise prices, Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia said while issuing the ruling against Anthem's deal.

Last month, a different U.S. judge ruled against Aetna's proposed deal for Humana.

Government antitrust officials argued that both deals would lead to less competition and higher prices for Americans. The acquisitions would have reduced the number of large national U.S. insurers from five to three.

[euphemia]

Good. Cigna is a horrible company. They should never merge with anyone.

[Brian4Liberty]

Good. Cigna is a horrible company. They should never merge with anyone.

And often an acquisition or merger with a terrible company will poison the other company.

[oyarde]

And often an acquisition or merger with a terrible company will poison the other company.

I have seen that before . Glad I no longer have a real job . I do not miss it , at all .

[Brian4Liberty]

I have seen that before . Glad I no longer have a real job . I do not miss it , at all .

Real world experience that is neither understood or taught at universities and think tanks...

[DamianTV]

Good. Cigna is a horrible company. They should never merge with anyone.

Sure they should, like Cox Cable or EA Games for most hated company with worst customer service! Then just change the name to CiCocks or CigEnemA or something appropriate like that...

[Madison320]

Antitrust laws are anti liberty. As Ayn Rand would say, "Free competition at the point of a gun". Of course the health care sector is so screwed up by government that it doesn't matter either way in this case.

[timosman]

Real world experience that is neither understood or taught at universities and think tanks...

There is no place in real world for downers. The reality is beautiful and everybody loves everybody. Plus how would you package something like that? You know how much money we were going to make on this merger?

[euphemia]

And often an acquisition or merger with a terrible company will poison the other company.

Yes, indeed.

[Brian4Liberty]

There is no place in real world for downers. The reality is beautiful and everybody loves everybody. Plus how would you package something like that? You know how much money we were going to make on this merger?

Yeah, Goldman-Sachs or some other firm will skim tens or hundreds of millions off the top for managing the merger, and the executives will get huge payouts. $#@! the shareholders, $#@! the customers.

[NorthCarolinaLiberty]

http://www.reuters.com/article/us-ci...-idUSKBN15O02I

The acquisitions would have reduced the number of large national U.S. insurers from five to three.

You're for a single payer system, right? What is your opinion? Didn't you support, and even canvass for, Obama's ACA?