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We are pleased to launch Anthem’s Medicare products to our Agents

Posted by www.psmbrokerage.com Admin on Wed, Sep 09, 2020 @ 11:35 AM

Tags: Medicare Advantage, Medicare, Medicare Supplement, Medicare Part D, Anthem, BCBS

Cigna faces off with Anthem, escalating fight by ending deal

Posted by www.psmbrokerage.com Admin on Wed, Feb 15, 2017 @ 05:08 PM

Cigna faces off with Anthem, escalating fight by ending deal.png

(Bloomberg) — Simmering tensions between Anthem Inc. and Cigna Corp. exploded Tuesday as Cigna sued to end their $48 billion deal, and Anthem moments later said it would fight to keep the merger alive.

The clash came just hours after the other U.S. health insurance megadeal, a $37 billion tie-up between Aetna Inc. and Humana Inc., ended peacefully with the companies mutually deciding to walk away from their agreement.

Related: Judge blocks Anthem-Cigna merger

Cigna, as part of its lawsuit against Anthem, is seeking a $1.85 billion breakup fee, plus $13 billion in additional damages it says are owed after “the path for regulatory approval of the transaction was fatally compromised” by the larger insurer.

Anthem called the move “invalid” and said it had already extended the time the two companies will have to complete the takeover to April 30. The merger was blocked by a federal judge last week, though Anthem has said it would seek an expedited appeal of the ruling.

The fact that the two tie-ups were called off on Valentine’s Day wasn’t lost on analysts.

“Valentine’s Day is turning out to be the day of broken mergers,” Evercore ISI analyst Michael Newshel wrote in a note to investors titled “breaking up is hard to do.”

A settlement between Anthem and Cigna is still “the most likely (and best) outcome,” said the analyst, who recommends holding Cigna stock. “Ultimately we view the latest developments as posturing in what comes down to a legal fight over the breakup fee.”

Related: Aetna and Humana break up

‘Contentiousness’

Tensions between Cigna and Indianapolis-based Anthem have been evident since before the Justice Department sued in July to stop the merger, which the government said would reduce competition and reduce choice for consumers. At a court hearing in August, an Anthem lawyer said there was “ contentiousness” with Cigna and that the smaller insurer intended to walk away after the deadline rather than extend the effort.

In her ruling last week rejecting the tie-up, U.S. District Judge Amy Berman Jackson cited the discord between the insurers as “the elephant in the courtroom.” Cigna didn’t join in Anthem’s appeals court filing

The bad rapport between the insurers stems from even before the deal was struck in July 2015. Cigna had rejected Anthem’s initial overtures, in part over a dispute about what role Cigna Chief Executive Officer David Cordani would have at a combined firm.

Cigna, based in Bloomfield, Connecticut, rose 0.6 percent to $146.68 at the close in New York. Anthem’s shares declined 0.1 percent to $163.32.

The end of the Aetna-Humana transaction — and potentially the Cigna-Anthem merger down the road — leaves some of the U.S.’s biggest insurers free to make new deals or spend billions on buying back their own shares.

The case is Cigna Corp. v. Anthem Inc., 2017-0109, Delaware Chancery Court (Wilmington).

Source: http://www.lifehealthpro.com/2017/02/15/cigna-faces-off-with-anthem-escalating-fight-by-en

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Tags: Cigna, Anthem

Anthem, Aetna sued by U.S. seeking to block insurer mergers

Posted by www.psmbrokerage.com Admin on Fri, Jul 22, 2016 @ 09:25 AM

Anthem, Aetna sued by U.S. seeking to block insurer mergers(Bloomberg) — U.S. antitrust enforcers roundly rejected a pair of proposed deals that would consolidate the nation’s five biggest health insurers into just three.

The Justice Department filed an antitrust lawsuit to stop Indianapolis-based Anthem’s merger with Bloomfield, Connecticut-based Cigna Corp. in federal court in Washington on Thursday and also moved to block Hartford-based Aetna’s planned merger with Louisville, Kentucky-based Humana.

Eight states including Florida and Illinois, plus the District of Columbia, are joining the federal government’s suit to block the Aetna-Humana deal.

Nine states and the District of Columbia joined the U.S. action against the Anthem-Cigna deal, including California, New York and Connecticut. "If permitted to proceed, Anthem’s purchase of Cigna likely would lead to higher prices and reduced benefits," the Justice Department said in the complaint, which was filed in federal court in Washington Thursday.

Anthem, in a statement, said it was fully committed to challenging the DOJ action in court but would remain receptive to efforts to reach a settlement with the Justice Department.

The U.S. action is “an unfortunate and misguided step backwards for access to affordable healthcare for America,” Anthem said. “The DOJ’s action is based on a flawed analysis and misunderstanding of the dynamic, competitive and highly regulated healthcare landscape and is inconsistent with the way that the DOJ has reviewed past healthcare transactions. ”

Cigna said it was “evaluating its options consistent with its obligations under the agreement” and said it doesn’t expect the transaction will close in 2016. “The earliest it could close is 2017, if at all.”

The actions are likely to set off a round of court battles as the insurers are obliged to fight the moves and could spark renewed pursuit of smaller players in the industry if the deals fail.

The cases are U.S. v. Anthem Inc., 16-cv-1493, U.S. District Court, District of Columbia (Washington) and U.S. v. Aetna Inc. 16-cv-1494, U.S. District Court, District of Columbia (Washington).

Source: http://www.lifehealthpro.com/2016/07/21/anthem-aetna-sued-by-us-seeking-to-block-insurer-m?t=medicare

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Tags: Humana, Cigna, Medicare Advantage, Medicare Supplement, aetna, Anthem, DOJ

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