Anthem-Cigna trial begins today — 3 considerations to note

The much anticipated Anthem-Cigna antirust case is going to trial today, Nov. 21, 2016, in Washington, D.C., bringing the proposed merger's impact on the employer market to the test, according to CNBC.

Here are key considerations moving forward into the trial:

1. The Department of Justice is claiming that the merger would cut the number of large health payers from five to four, serving to large employers' detriment. However, legal experts argue that healthcare antirust cases generally revolve around local marketplace competition, as opposed to national competitors.

2. While Anthem and Cigna claim their combined company will lower overhead costs and can better negotiate prices with hospitals and physician groups, the DOJ believes the two payers' contentious relationship will impede their ability to merge successfully. In October, 2016, a court official supported the DOJ's request for Anthem and Cigna to release documents that show the companies fighting over their merger agreement.

3. The trial comes during a crucial moment as healthcare's future is largely uncertain. With a recently elected Republican president-elect and Congress, many are speculating as to the ACA's fate and what the healthcare landscape will look like in the coming months. However, some say the court can only make decisions concerning the merger based on the current healthcare landscape.

https://www.beckersasc.com/asc-coding-billing-and-collections/anthem-cigna-may-be-forced-to-release-hostile-letters-over-48b-deal-6-things-to-know.html

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