DOJ reportedly preparing suits against Aetna-Humana, Anthem-Cigna mergers

Reuters and Bloomberg have reported the U.S. Department of Justice (DOJ) will soon file lawsuits to block two pending mergers between major health insurers: Anthem’s acquisition of Cigna and Aetna’s takeover of Humana.

Both stories cite “sources familiar with the matter,” who said the DOJ is concerned about healthcare costs increasing if four of the five largest insurers in the U.S. consolidate. A July 8 report from Reuters said the DOJ had “significant concerns” about the Aetna-Humana deal, and since then, Aetna has begun looking for buyers for its Medicare Advantage business to ease antitrust concerns. According to Bloomberg, those efforts aren’t likely satisfy federal officials.

The rumored DOJ lawsuits would be exactly what several groups of politicians and state regulators have requested over the past several months:

• On May 24, Missouri’s insurance department issued an order against the Aetna-Humana merger over its “anticompetitive impact."
• On June 16, California Insurance Commissioner Dave Jones asked the DOJ to block the Anthem-Cigna deal, saying “More competition in California's consolidated health insurance markets is needed, not less.”
• On June 22, seven Democratic U.S. Senators wrote a letter to the DOJ asking it to challenge the deals, arguing the result will be higher premiums and reduced access to care.

Not all state agencies have opposed the deal—18 state insurance regulators signed off on the Aetna-Humana deal, and another 10 approved the Anthem-Cigna merger.

“We are steadfast in our belief that this deal is good for consumers and the health-care system as a whole,” T.J. Crawford, an Aetna spokesman, said to Bloomberg.

Bloomberg's and Reuters’ sources indicate the suits could be filed as early as next week.