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NH, 11 Other States File Suit To Block Anthem Acquisition Of Cigna
NH, 11 Other States File Suit To Block Anthem Acquisition Of Cigna
Posted By:
Phyllis Muzeroll
on:
July 21, 2016
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New Hampshire, US Department of Justice and state Attorneys General sue to prevent merger of Anthem and Cigna
CONCORD, NH–The New Hampshire Attorney General, together with the U.S. Department of Justice and attorneys general from 11 other states filed suit today to block Anthem’s proposed acquisition of Cigna. The plaintiffs allege that the transactions would increase concentration and harm competition not only in New Hampshire, but across the country, by reducing the number of actively competing providers of health insurance.
The Department and state attorneys general filed the merger challenge in the U.S. District Court for the District of Columbia. The complaint alleges that the mergers— valued at $54 billion—would harm seniors, working families and individuals, employers, and doctors and other healthcare providers by limiting price competition, reducing benefits, decreasing incentives to provide innovative wellness programs, and lowering the quality of care.
“With all the changes taking place in the delivery of healthcare services, New Hampshire healthcare consumers and providers have benefited from the robust competition between Anthem and Cigna,” said New Hampshire Attorney General Joseph Foster. “In New Hampshire, competition has inspired health insurers to explore new and innovative methods of providing and paying for health care while working to keep prices under control. In the absence of this competitive environment, healthcare in New Hampshire is likely to suffer. New competitors have found New Hampshire to be a difficult market to enter, and if the merger were to take place, it may take years for competition to return to its current level. In the meantime, to the detriment of New Hampshire consumers, innovation in cost control and delivery of services is likely to suffer. New Hampshire will continue to work with our state and federal colleagues to protect competition and innovation in this vitally important industry,” Foster stated.
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