Justice Department to Challenge Two Health-Insurance Mergers
July 19 2016 - 1:40PM
Dow Jones News
The Justice Department is close to challenging Anthem Inc.'s
proposed acquisition of Cigna Corp. and Aetna Inc.'s planned
combination with Humana Inc., according to people familiar with the
matter, moves that would represent strong government pushback
against consolidation in the health-insurance industry.
Antitrust lawsuits against the planned mergers would be the
culmination of concerns the Justice Department has had about both
deals from the outset.
During a yearlong review of the mergers, the department's
skepticism hasn't subsided, people familiar with the matter
said.
These people said a final decision to challenge the deals could
come as soon as this week.
The Wall Street Journal previously reported the mergers were in
trouble at the Justice Department, with antitrust enforcers worried
the deals would reduce competition and harm consumers.
The companies, however, have been given the chance to try to
persuade the department that any antitrust problems raised by the
deals could be addressed by shedding assets to competitors. The
department has been skeptical that asset sales, or divestitures,
would adequately preserve the current level of competition.
Bloomberg News reported earlier Tuesday that the department was
poised to file lawsuits in the coming days.
A Justice Department spokesman declined to comment.
An Aetna spokesman said the company "doesn't comment on rumors
and speculation, but we are steadfast in our belief that this deal
is good for consumers and the health-care system as a whole."
Cigna and Anthem declined to comment. A Humana spokesman
couldn't immediately be reached.
Write to Brent Kendall at brent.kendall@wsj.com and Anna Wilde
Mathews at anna.mathews@wsj.com
(END) Dow Jones Newswires
July 19, 2016 13:25 ET (17:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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