Virginia insurance bureau recommends against approval of Anthem-Cigna acquisition

The Virginia Bureau of Insurance July 27 recommended to the State Corporation Commission that the commonwealth not approve Anthem’s acquisition of Cigna saying it has the potential to reduce competition in the large group market. “The Bureau has determined that the merger will impact competition at both a state and local level in the market for large group comprehensive medical insurance,” the report states. “Despite general claims of benefits and mitigating factors, the Bureau further has determined that this impact raises the potential of harm to policyholders as well as the general public. Based on these determinations, the Bureau recommends at this time that the proposed merger is not in the best interests of policyholders or the public in general.” In testimony in May, the Virginia Hospital & Healthcare Association, urged the commission to oppose the proposed merger. The U.S. Department of Justice July 21 took action to block both Anthem’s acquisition of Cigna and Aetna’s acquisition of Humana, a move strongly supported by the AHA.