During the trial, Anthem lawyers said if the merger was approved, smaller insurance companies and new market players would ensure the insurance industry remained competitive. However, data that Anthem presented during the trial may not have supported this claim, with Judge Jackson saying, “You ended up undercutting the force of your argument.” Judge Jackson said she found the data presented “a little insulting,” WSJ reported. She also said although small players may accrue some business in the market, the question remains as to whether they have a dominant enough presence in the national marketplace.
Throughout the trial, Anthem lawyers highlighted the benefits the merger would offer such as cost-savings for consumers. However, Judge Jackson said she was unsure the deal’s cost-savings were “merger-specific” and raised the possibility that Anthem-Cigna’s disharmonious relationship may detract from the possible merger’s benefits. In defense of the deal, Anthem Lawyer Christopher Curran, JD, said tension between the two payers was at the CEO level and that the DOJ attorneys did not accurately depict the nature of the arguments. He said that the disagreements are irrelevant as the combined company will be a “single-minded entity.”
Judge Jackson also questioned the DOJ defense team’s claims. The DOJ has argued the deal would negatively impact consumers in 14 states where Anthem sells commercial insurance as the deal would take Cigna plans out of those states. The DOJ has continually said that Cigna was a major competitor to Anthem. However, Judge Jackson said Anthem brings in better discounts from providers, compared to Cigna. Additionally, Judge Jackson said she has obtained testimony that paints two different pictures concerning how Cigna is faring in the commercial marketplace.
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