Insurance Commissioner Urges U.S. Justice Department to Block Anthem/Cigna Merger
Upon learning of the proposed merger in July, 2015, CAMFT swiftly wrote a letter of concern to California Insurance Commissioner Dave Jones. In April, 2016, during the public comment period for this proposed merger, CAMFT sent another letter of concern to Commissioner Jones voicing our concerns regarding the proposed merger of Anthem and Cigna. CAMFT was concerned that the merger would lead to a decrease in patients’ choice for the selection of health care insurance coverage in the marketplace; less competition in the health care market due to an increase of power to a monopolistic insurance company; and an increase of health insurance premiums for patients. After an extensive review of all the testimony from the public hearing, comments submitted by the health insurers, merger experts, consumer advocates, medical professionals, and other members of the public, and after reviewing various studies and the consequences of past mergers, Commissioner Jones concluded the merger of the second and fourth largest national health insurers is anti-competitive and will harm California consumers, businesses, and the California health insurance market. On June 16, 2016, the Commissioner formally submitted his findings to and urged the U.S. Department of Justice to block the merger of Anthem and Cigna. In his press release, Commissioner Jones states, “When it comes to the Anthem and Cigna merger, bigger is not better for California's consumers or the health insurance market.” To read the Commissioner’s press release, click here.