NH Att. Gen. joins health insurance lawsuit

The New Hampshire Attorney General has joined a lawsuit with eleven other states to stop the merger of health insurers Anthem and Cigna.

Anthem is the nation’s second-largest health insurer.  Cigna is the nation’s fourth-largest health insurer.

“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,” said New Hampshire Attorney General Joseph Foster. “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.” 

Anthem and Cigna dispute claims that the merger will increase prices.

“[Anthem and Cigna] believe that the transaction will lead to lower – not higher – prices, as the combined company will be able to operate more efficiently and improve affordability and quality,” says a website run by the two insurers.  “Additionally, it should be noted that the health insurance industry also has regulatory pricing safeguards in place, including MLR floors, rebates and risk corridor programs, where pricing in excess of the regulated levels is refunded to the customer.” 

A press release from Cigna suggested that the lawsuit may succeed: “In light of the [Department of Justice]'s decision, we do not believe the transaction will close in 2016 and the earliest it could close is 2017, if at all.” 

What do you think about the merger between Anthem and Cigna?  Let us know in the comments.