AHA implores feds to put Anthem-Cigna through the wringer

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 - DOJ

The American Hospital Association (AHA) is urging the U.S. Department of Justice (DOJ) to take a hard look at Anthem’s planned $48.4 billion purchase of Cigna.

In an analysis sent Aug. 5 to William Baer, assistant attorney general in DOJ’s antitrust division, the AHA claims that the deal presents a material risk of substantially reducing competition, violating Section 7 of the Clayton Act.

“The potential harm to consumers from this loss of competition is large and durable,” states the analysis, which is introduced by a cover letter from Melinda Reid Hatton, AHA’s senior vice president and general counsel.

“Because the two companies generate more than $100 billion in combined revenues,” adds AHA, “even a modest price increase would cost consumers billions of dollars in higher health care costs.”

Click here to read the letter/analysis.