Tennessee, Georgia join with feds to block Anthem's purchase of Cigna

Tennessee Attorney General Herbert Slatery believes a bill before the legislature requiring students to use bathrooms and locker room facilities in line with birth gender may violate federal laws.
Tennessee Attorney General Herbert Slatery believes a bill before the legislature requiring students to use bathrooms and locker room facilities in line with birth gender may violate federal laws.
photo This Aug 4, 2011, file photo shows the Cigna logo at the headquarters of the health insurer Cigna Corp. in Philadelphia.
photo FILE - This Feb. 5, 2015 file photo shows the Anthem logo at the health insurer's corporate headquarters in Indianapolis. Anthem on Monday, June 22, 2015 reaffirmed their commitment to buy rival Cigna a day after Cigna shot down the idea in a letter delivered to Anthems board. (AP Photo/Michael Conroy, File)

Attorney General Herbert Slatery announced today that Tennessee has joined the U.S. Department of Justice and attorneys general from 10 other states in a court challenging opposing a merger between health insurance giants Anthem and Cigna.

The suit charges a merge would increase concentration in the industry and harm competition in Tennessee and across the country, ultimately impacting services and prices.

The Justice Department and state attorneys general filed the merger challenge in the U.S. District Court for the District of Columbia. Georgia is among states filing. The District of Columbia government has joined as well.

Their filing alleges the $54 billion merger would harm seniors, working families and individuals as well as employers, doctors and other healthcare providers by limiting price competition, reducing benefits, decreasing incentives to provide innovative wellness programs and lowering quality of care.

"In what instance would Tennesseans want 4 instead of 5 competitors from which to choose insurance products or negotiate services?" Slatery said in a news release. "That is the question raised by the merger, whether one is a national employer comparing benefits and premiums, a health care provider like a hospital or physician practice, or an individual selecting a policy on an exchange."

Slatery added that "there are too many unanswered questions and too much at stake in reducing competition for Tennessee to support this merger.

Georgia also has joined the federal government's challenge against Anthem's $54 billion acquisition of Cigna. Cigna's Tennessee headquarters is in Chattanooga.

Anthem Inc. is headquartered in Indianapolis, Ind. It is the nation's second-largest health insurer. It operates across the entire country and provides health insurance to 39 million people. The company reported over $79 billion in revenues in 2015.

Cigna Corp. is headquartered in Hartford, Conn. It is the nation's fourth-largest health insurer. It too operates in every state and the District of Columbia. Cigna provides health insurance to 15 million people. In 2015, Cigna reported $38 billion in revenues.

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