FILE - In this Nov. 17, 2009 file photo, a pedestrian walks past the headquarters of the health insurer Cigna Corp. in in Philadelphia. A federal judge on Wednesday, Feb. 8, 2017, rejected Anthem Inc.'s bid to buy rival health insurer Cigna Corp., saying the merger would likely lead to higher costs, less competition and diminished innovation. U.S. District Judge Amy Berman Jackson said the merger would significantly reduce competition in the already concentrated insurance market, particularly for large national employers.
FILE - This combo of file photos shows signage for health insurers Cigna Corp., and Anthem Inc. Anthem is finally ending its soured, $48 billion bid to buy rival Cigna, but the nation's second-largest health insurer isn't giving up a fight over whether Cigna deserves a termination fee for the scrapped deal. Anthem says Cigna sabotaged the merger agreement and caused "massive damages" for Anthem, which provides Blue Cross-Blue Shield coverage in several states.
Jackson says the merger would significantly reduce competition in the already concentrated insurance market, particularly for large employers. Just four insurers sell to companies with at least 5,000 employees spread across multiple states, and the judge says Cigna and Anthem aggressively compete for their business.
"Cigna is disappointed in the outcome of this process," the company said in a statement. "Cigna believed from the outset that the merger of the two companies had the potential to expand choice, improve affordability and quality and further accelerate value-based care. Anthem contracted for and assumed full responsibility to lead the federal and state regulatory approval process, as well as the litigation strategy, under the merger agreement. Cigna fulfilled all of its contractual obligations and fully cooperated with Anthem throughout the approval process."