NY to hold hearing on Anthem-Cigna deal due to 'serious concerns': 4 takeaways

The New York State Department of Financial Services will hold a hearing before issuing a final decision on Anthem's proposed $54 billion acquisition of Cigna, Bloomberg reported.

The department sent a letter Wednesday to the Indianapolis-based insurer's attorney, outlining its "significant concerns."

New York's concerns include:

1. The resulting entity of the Anthem-Cigna deal would control nearly a third of New York's commercial insurance market and almost half of the state's market for administrative services to self-insured companies.

2. Provider payments could decrease, resulting in limited consumer choice.

3. Anthem may not be able to finance an acquisition of Cigna, which would harm both companies.

4. The U.S. Department of Justice's pending lawsuit may impede the deal's viability.

No hearing date was set in the letter. A Department of Financial Services spokesperson told Bloomberg it will release a notice in the "near future."

New York regulators did not set a hearing over Hartford, Conn.-based Aetna's $37 billion acquisition of Louisville, Ky.-based Humana, as the state determined the deal would not hinder competition. However, regulators commanded the insurers still offer Medicare products and leave benefits intact. 

More articles about payer issues:
How Aetna, Cigna, Humana and Anthem fared in Q2
Humana posts large profits despite 24% decline in commercial members
UnitedHealthcare pays out $148M in quality bonuses to 1.9k physicians

 

 

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