U.S. Files Lawsuits Challenging Health Insurer Deals

U.S. antitrust enforcers on Thursday filed lawsuits challenging Anthem Inc.'s proposed acquisition of Cigna Corp. and Aetna Inc.'s planned combination with Humana Inc., alleging the mergers would produce an unacceptable reduction in competition.

The antitrust lawsuits are a bold response by the Justice Department to aggressive efforts by the nation's leading health insurers to consolidate. Had the department allowed the deals, the number of large health insurers would have dropped to three from five.

The department filed the lawsuits in a Washington, D.C., federal court, asking a judge to block the mergers. The department has scheduled an 11 a.m. ET press conference to discuss the lawsuits.

The lawsuits come at the twilight of the tenure of President Barack Obama's antitrust enforcers, who have blocked several controversial mergers, even as they've approved others with conditions attached.

The insurance battle gives the Justice Department at least one more major antitrust case to battle in court before the current crop of enforcers gives way to a new administration.

Antitrust enforcers have won most of the cases they have brought in recent years, though there have been occasional setbacks, including court rulings that went against Federal Trade Commission challenges to hospital mergers.

The $48 billion Anthem-Cigna acquisition would create the largest health insurer by enrollment, with more than 54 million members, and $117 billion in annual revenue.

Aetna's $34 billion proposed acquisition of Humana would allow it to become the biggest seller of Medicare Advantage plans, and have overall revenue of about $115 billion combined based on 2015 totals.

Both deals were announced last summer.

Write to Brent Kendall at [e-mail] and Anna Wilde Mathews at [e-mail]

(END) Dow Jones Newswires

July 21, 2016 11:05 ET (15:05 GMT)

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