As the government attempts to block Anthem from merging with Cigna, Anthem may divest portions its business to ensure the merger's success, the Indianapolis Business Journal reports.
Here is what you need to know.
1. The U.S. Justice Department is pursuing an antitrust because it feels the merger would "substantially lessen competition" in 35 metropolitan areas where more than 65 million people live.
2. Anthem responded saying it would "remain receptive to efforts to reach a settlement," which could mean breaking off pieces of its business.
3. If Anthem could "divest product lines, business divisions or geographical divisions," it could lessen the monopolistic elements of the merger, but antitrust experts said even that "won't be a slam dunk for Anthem."
4. If Anthem and Cigna merge, it decreases the major national insurer market from four companies to three. Additionally if Anthem decides to sell accounts it would leave customers in some markets with only two remaining choices.
5. A proposal Anthem made to divest from the national market, and sell off shares to smaller insurers was met with resistance from the Justice Department.
6. The future of the merger will be decided in a November trial or in a settlement.
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