Biz-novosti

Appeals court upholds decision to block Anthem bid for Cigna


An appeals court has denied Anthem Inc.'s (NYSE:ANTM) bid to overturn a court ruling that blocked its planned merger with Cigna Corp.

The lower court judge ruled said the deal should be stopped because it risked undermining competition in the health insurance markets. Rivals Aetna and Humana had also sought to merge but that deal collapsed this year amid opposition from the federal government and states.

"Cigna officials provided compelling testimony undermining the projections of future savings" that Anthem proffered, the court said.

The companies still have the option of another appeal to try to save the deal.

The court said it was also concerned the merger would quash Cigna's innovative approach to lowering health care costs through policies that encouraged preventive treatment and monitoring of patients to make sure they were following their doctors' orders.

The Nintendo Switch will be back in stock at Toys'R'Us this Friday
Despite selling more that 900,000 copies, The Legend of Zelda: Breath of the Wild was NOT the Number One in terms of sales. Nintendo pulls out the stops with Mario Kart 8, creating a wonderful kart racing experience from top to bottom.

U.S. Circuit Judge Judith Wilson Rogers wrote in her majority opinion on Friday, "One way Anthem maintains the merger will result in this new product is through rebranding".

Cigna, which wanted to end the merger, can fight to collect $1.85-billion break-up fee, as well as $13 billion in damages from the failure of the merger. In their written opinion, the panel said Anthem failed to demonstrate that the deal could achieve the "extraordinary efficiencies" necessary to offset the effect of losing Cigna as a competitor in the already highly concentrated markets where it sells employer-based plans to national accounts. "We are very pleased that the Court of Appeals agreed with the District Court's finding that this merger would violate antitrust laws by substantially lessening competition in commercial health insurance markets, likely leading to increased health insurance premiums and reduced quality and innovation". The Department of Justice and 11 states and D.C. sued to block the merger on the grounds it was likely.

"Anthem has not explained why these projected savings would even exist", Rogers wrote.

The American Medical Association applauded the decision and had submitted an amicus brief to the appellate court in support of preserving the merger injunction.

In a dissent, U.S. Circuit Judge Brett Kavanaugh said he'd have sent the case back to the lower court to re-examine whether those lower Anthem-Cigna rates would have been derived from unlawful market power over hospitals and doctors. The Delaware cases are Anthem Inc. v. Cigna Corp., No. 2017-114, Delaware Chancery Court (Wilmington) and Cigna Corp. v. Anthem Inc., 2017-0109, Delaware Chancery Court (Wilmington). That's because the companies don't have to merge for customers to gain access to Anthem's lower rates.

Related Articles

  • Colorado lawmakers approve pot for PTSD, with new limits

    Colorado lawmakers approve pot for PTSD, with new limits

    The researchers defined illegal use as any use of marijuana that didn't conform with the laws within the respondents' state. The researchers analyzed responses to national surveys from almost 120,000 adults from 39 states.

    Turkey says European rights court has no jurisdiction over referendum

    Unofficial results show the Yes campaign won with 51.41 percent, while the No vote stood at 48.59 percent. Opposition parties criticized the electoral board's decision to allow unstamped ballots to be counted.
    Lavalin to buy British engineering firm WS Atkins PLC for $3.6 billion

    Lavalin to buy British engineering firm WS Atkins PLC for $3.6 billion

    SNC-Lavalin does not expect this integration review to have a material impact on the continued employment of Atkins' employees. Drewett will report into SNC-Lavalin's president and CEO and become a member of SNC-Lavalin's executive committee.
  • Judge cites Trump's words in blocking 'sanctuary city' order

    Judge cites Trump's words in blocking 'sanctuary city' order

    Lordes Reboyoso carries placard at a rally supporrting sanctuary cities outside of City Hall in San Francisco in January. Orrick said his ruling does not affect the administration's ability to enforce existing conditions on federal grants.
    Alexis Bledel attends the premiere of The Handmaid's Tale

    Alexis Bledel attends the premiere of The Handmaid's Tale

    The heartening thing is that a lot of people have become much more active than they were even during the election". In late April, #ThingsOnlyChristianWomenHear started trending on Twitter thanks to Canadian author Sarah Bessey.
    Deal for Malcolm Butler less likely as Saints consider depth of draft

    Deal for Malcolm Butler less likely as Saints consider depth of draft

    Butler likely staying in New England secures the Patriots one of the NFL's best defensive secondaries for at least one season. For the Patriots, they certainly don't have to trade Butler if the compensation in return isn't something that they like.
  • Russia-linked hackers targeted Macron campaign

    Russia-linked hackers targeted Macron campaign

    Macron, while the "visible side" took the form of fake news or slanted stories in the French-language Russian media. Mahjoubi described the phishing attacks as the "invisible side" of an apparent Russian campaign to hurt Mr.
    Venezuela threatens to exit OAS as pressure on Maduro mounts

    Venezuela threatens to exit OAS as pressure on Maduro mounts

    Trying to keep the pressure on Maduro, the opposition Democratic Unity coalition is planning a march on Wednesday toward downtown Caracas .

    Saudi Arabia cuts deficit by half in first quarter - deputy economy minister

    Awad Al-Awad was named minister of culture and information, another key position in the government, replacing Adel Al-Toraifi. But ties between Riyadh and Washington became increasingly frayed during the administration of president Barack Obama.
  • Turkey: hundreds more detained over suspected links to Gulen

    Security sources said the operations targeted the network's structure in the police force, and most of those detained were police officers.

    Twitter is gaining more users, losing less money

    Twitter Chief operating officer, Anthony Noto, said that there is a remarkable growth due to the Trump phenomenon in Twitter . Analysts were lukewarm on Twitter's prospects heading into the quarterly results, underlining significant revenue headwinds.
    'The Fate of the Furious' laps new films at box office

    'The Fate of the Furious' laps new films at box office

    It is bombs away at the Friday box office, where four out of five new films are badly struggling, according to early returns. That and its projected foreign overall total will mean The Fate of the Furious will finish around $1.1-1.2 billion globally.

Comments