One thing’s for sure: Anthem is persistent. Just when everyone thought the Anthem-Cigna merger had been put to rest, Anthem brought it back to light.
In a statement Friday, Anthem said it filed a petition with the Supreme Court seeking review of the Cigna deal.
“Citing the circuit split over the consideration of efficiencies in merger analysis, Anthem urges that 1960s-era merger precedents relied upon by the courts below must be updated to reflect the modern understanding of economics and consumer benefit,” the Indianapolis, Indiana-based insurer said in a statement.
In a 2-1 vote issued last Friday, a U.S. appeals court upheld a lower court’s earlier decision to block Anthem’s proposed takeover of Cigna.
Both Judge Judith Rogers and Judge Patricia Millett said the merger would harm competition in the market. The only dissenting judge, Brett Kavanaugh, claimed the “merger would be beneficial to the employer-customers who obtain insurance services from Anthem and Cigna.”
At that time, Anthem said it was “disappointed” by the court’s decision and that merging “Anthem and Cigna would positively impact the health and well-being of millions of Americans and deliver significant cost savings to consumers.” So it comes as no surprise that the insurer is taking another whack at pushing the deal.
Should the Supreme Court hear Anthem’s case, it would be a significant business test for the newly appointed Justice Neil Gorsuch. In an article earlier this month, Forbes contributor Bruce Japsen noted some people “see a Supreme Court potentially more friendly to the Anthem case now that the high court again has nine members including the addition of conservative, pro-business Justice Neil Gorsuch.”
Meanwhile, the insurers are awaiting the results of their actions from earlier this year. In February, Anthem and Cigna sued each other. Cigna, which wanted out of the deal, asked for a $1.85 billion breakup fee and more than $13 billion in additional damages. Anthem blamed Cigna “for undermining its legal defense of the deal,” according to Bloomberg. A May 8 hearing in the Delaware Court of Chancery will determine whether Cigna can exit the merger agreement.
This seems to be the deal that goes on forever. It’s been nearly two years since the insurers agreed to merge. Despite hefty roadblocks — like the Department of Justice, 11 states and the District of Columbia suing to block the proposed merger in July 2016 — Anthem can’t take no for an answer.
Keep your eyes peeled for how this one ends.
Photo: traveler1116, Getty Images
