US files lawsuits to block health insurance mergers

The US Department of Justice has laid down the law to health insurance providers, with antitrust lawsuits being brought against two proposed mergers due to a possible lack of competition in the market.

The lawsuits were filed in the Washington DC federal court against Anthem Inc's proposed purchase of Cigna Corp. and Aetna Inc's acquisition of Humana Inc.

The lawsuits come nearing the end 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 majority of cases brought by these enforcers are won, despite the occasional setback.

Both deals carry significant weight, as Anthem's attempt to buy Cigna is said to be worth around $48bn, and would create the largest health insurer by membership in the US. Aetna's merger with Humana would lead to an overall revenue of $115bn based on 2015 estimates.

In a joint statement released Thursday, Aetna and Humana said they would “vigorously defend” their deal.

Amthem and Cigna had different tones however, as the former said it is “fully committed to challenging the DOJ’s decision in court but will remain receptive to any efforts to reach a settlement.” Cigna released a separate statement to confirm that it is “currently evaluating its options consistent with its obligations under the agreement”.