NH AG Files Lawsuit to Block Anthem-Cigna Merger

CONCORD, NH — The New Hampshire Attorney General has joined with the U.S. Department of Justice and AGs from 11 other states to file a lawsuit to block a proposed merger between Anthem and Cigna, two of the world’s largest healthcare companies, according to a press statement.

Anthem’s $54 billion merger with Cigna – the second largest healthcare company merging with the fourth largest company – would reduce competition to insurance in a number of the nation’s major cities and in Affordable Care Act exchanges, according to plaintiffs. The bulk of the nation’s healthcare insurance industry would be controlled by a few companies, according to the plaintiffs.

The complaint alleged that the merger would “harm seniors, working families and individuals, employers, and doctors and other healthcare providers by limiting price competition, reducing benefits, decreasing incentives to provide innovative wellness programs, and lowering the quality of care.”

NH AG Joseph Foster alleged that the transactions would increase concentration and harm competition not only in New Hampshire, but across the country, by reducing the number of actively competing providers of health insurance.

“With all the changes taking place in the delivery of healthcare services, New Hampshire healthcare consumers and providers have benefitted from the robust competition between Anthem and Cigna” he said. “In New Hampshire, competition has inspired health insurers to explore new and innovative methods of providing and paying for health care while working to keep prices under control. In the absence of this competitive environment, healthcare in New Hampshire is likely to suffer.”

Even though a number of state regulators across the county have approved the merger, Foster said new competitors have found New Hampshire to be a difficult market to enter as it is. If the merger takes place, he added, it may take years for competition to return to its current level.

“In the meantime, to the detriment of New Hampshire consumers, innovation in cost control and delivery of services is likely to suffer,” he added. “New Hampshire will

continue to work with our state and federal colleagues to protect competition and innovation in this vitally important industry.