Shelby Livingston | January 23, 2017
A U.S. District Court Judge ruled against the $37 billion merger between national insurers Aetna and Humana on Monday, effectively blocking the controversial tie-up that would have altered the Medicare Advantage landscape.
U.S. District Judge John D. Bates blocked the merger on antitrust grounds, claiming that it would substantially reduce competition in violation of antitrust law.
“Specifically, the proposed merger is likely to substantially lessen competition in the sale of individual Medicare Advantage plans in 364 counties identified in the complaint and in the sale of individual commercial insurance on the public exchanges in three counties in Florida identified in the complaint,” the opinion reads.
An Aetna spokesman says the insurer is reviewing the opinion, and it will give “serious consideration to an appeal.”
Aetna and Humana originally announced their intent to merge on July 2, 2015.
Some legal experts had said the $54 billion merger between Anthem and Cigna had a lesser chance of surviving antitrust challenges. The decision on that merger has yet to be announced.
Source: Modern Healthcare