Here’s what you should know.
1. A federal district court ruled against the merger on Feb. 8, 2017, citing the combined payers would limit competition as a primary reason for the ruling.
2. Cigna released a statement Feb. 14, 2017 saying it didn’t believe the transaction would earn regulatory approval, and that terminating the agreement would be best for its shareholders.
3. Cigna filed a suit against Anthem in Delaware’s Court of Chancery Feb. 14, 2017. Cigna needs a court order to limit Anthem from extending the termination date. The suit will allow the Cigna to collect its $1.85 billion merger breakup fee.
4. In addition to the breakup fee, Cigna is seeking $13 billion in damages. In the statement, Cigna said, “These additional damages include the amount of premium that Cigna shareholders did not realize as a result of the failed merger process. This action is necessary to enforce and preserve Cigna’s rights and protect the interests of its shareholders.”
5. Anthem released a response saying “Under the terms of the merger agreement, Cigna does not have a right to terminate the agreement. Therefore, Cigna’s purported termination of the merger agreement is invalid,” Reuters reports.
More articles on coding, billing and collections:
A third of Americans believe ACA, Obamacare different policies: 4 key notes
Payers increasing scrutiny of coding compliance
Healthcare uncertainty may yield major premium increases — 6 key notes
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.