A merger of the nation’s second- and third-largest medical health insurance carriers — Anthem and Cigna — has been blocked by a federal judge.
The ruling Wednesday by Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia says that massive merger would violate federal antitrust laws.
The $54 billion by Anthem Inc. of rival insurer Cigna Corp was challenged by the U.S. Department of Justice as well as Colorado Attorney General Cynthia Coffman, 10 other states and the District of Columbia.
“Health insurance competition is an inherently local concern,” Colorado Attorney General Cynthia H. Coffman said in a news release. “Colorado residents, businesses, health care providers, and third-party payors all have a vested interest in ensuring that the quality, quantity and price of health care services remains competitive. Today we have successfully maintained that vital competition.”
In blocking the merger, the court ruled that the proposed merger is likely to substantially lessen competition and impact consumer choice in the sale of health insurance, the Coffman’s release said.
“Anthem has not been able to demonstrate that its plan is achievable or that it will benefit consumers as advertised,” Jackson said in the order.
The courtap order will help preserve competition in 35 regional markets where both companies operate, according to Coffman’s release.