Anthem and Cigna Begin Proceedings to Defend Merger

Anthem and Cigna are working to save a $48B deal and have begun presenting their case to a federal judge looking to prove the merger will not have a negative impact on consumers. Their position is that the merger will allow them to reimburse providers at lower rates and these savings will be passed on to employers. On the flip side, the U.S. Justice Department will attempt to prove the combining of Anthem and Cigna will actually have a negative effect on employers by reducing competition in the market.

However, during these proceedings a rift between Anthem and Cigna is surfacing. A Cigna executive testified that the plans developed by Anthem could ultimately cause harm to Cigna. This conflict appears to undercut the position that the merger will lead to more efficient, lower costs, and the tenuous relationship between the organization’s leaders does not support a successful integration.

As these procedures continue to unfold, revenue cycle management companies and physician billers will continue to watch in anticipation of the impact on their industry.

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