This Month Only! >> $20 off and a FREE SHRM tote with your membership and code TOTE2018!
Sign up for free email newsletters and get more SHRM content delivered to your inbox.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
New York Attorney General Eric Schneiderman said health care consumers are the victors following the U.S. District Court for the District of Columbia decision to block the merger between insurers Anthem and Cigna.
"The Anthem-Cigna merger had the potential to harm millions of consumers who are covered by health insurance plans—including hundreds of thousands of New Yorkers—in the form of higher premium costs, reduced accessibility and lower quality of care," he said in a news release.
The Justice Department, New York and 10 other states plus the District of Columbia brought suit to halt the merger on antitrust grounds.
Anthem Will Appeal Ruling
Anthem announced on Feb. 9 that it will appeal the decision. Anthem CEO Joseph Swedish said the merger would benefit consumers by saving them $2 billion in medical costs. (The Hill)
Anthem and Cigna Have Huge Share of Market
The decision blocking the merger of Anthem and Cigna prevented the combination of the second and third largest health insurers in the country. (The Denver Post)
Differing Views on Effect Merger Would Have
Anthem asserted that the consolidation would have saved patients money because it would be able to extract better pricing from health care providers after the acquisition. However, the Justice Department's acting assistant attorney general said the merger would have stifled competition and raised insurance prices. (USA Today)
Aetna-Humana Merger Also Blocked
The court's ruling was similar to a Jan. 23 decision that a merger between Aetna and Humana should not be allowed to go forward on antitrust grounds. (The New York Times)
[SHRM members-only platform: SHRM Connect]
Trend Toward Consolidation Thwarted
For the moment, the rulings halt consolidation in the health insurance market that may have reduced the five main insurers to three. Smaller insurers have announced plans to merge as well. (The New York Times)
Doctors Welcome Decision
While insurers claimed mergers were precipitated by the Affordable Care Act, Andrew Gurman, president of the American Medical Association, welcomed the blocking of the Anthem-Cigna merger, saying the proposed acquisition poses a threat to the affordability of health care. (US News & World Report)
Was this article useful? SHRM offers thousands of tools, templates and other exclusive member benefits, including compliance updates, sample policies, HR expert advice, education discounts, a growing online member community and much more. Join/Renew Now and let SHRM help you work smarter.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Become a SHRM Member
SHRM’s HR Vendor Directory contains over 10,000 companies