In a February 28, 2017 letter to the Department of Justice (DOJ), the American Medical Association (AMA) expressed concern regarding Anthem’s recent statements about a potential settlement with DOJ that would allow the Anthem/Cigna merger to close despite an earlier court decision blocking the merger.
As previously reported, on February 8, 2017, the United States District Court for the District of Columbia granted the DOJ Antitrust Division’s request for an injunction blocking Anthem’s proposed $54 billion acquisition of Cigna. Anthem is currently appealing that ruling and has suggested in statements in the Delaware Court of Chancery that Anthem still hopes to close the merger transaction either through its pending appeal or through a potential resolution with DOJ. Specifically, Anthem indicated that there were reasons to believe the merger may be able to clear due to, among other things, the change in administration. Anthem noted that Vice President Mike Pence, who previously served as Governor of Indiana (where Anthem’s headquarters are located), was supportive of the transaction as the Governor of Indiana.
In its letter titled The Anthem-CIGNA Merger: A Deal That Should Never Close, the AMA expresses its alarm regarding potential “politically-driven settlement negotiations.” The AMA indicates that it “strongly believe[s] that political influence should play no role in the enforcement of the antitrust laws” and urges DOJ to vigorously defend the District Court’s ruling.
The AMA’s letter is available here.