US judge blocks Anthem-Cigna health insurance merger

(AP) — A federal judge on Wednesday rejected Anthem Inc.'s bid to buy rival health insurer Cigna Corp., saying the merger would likely lead to higher costs, less competition and diminished innovation.

Anthem has negotiated lower payments to doctors and hospitals, while Cigna has higher upfront expenses for wellness in the hopes of reducing future health expenses.

Last month, another federal judge rejected Aetna's roughly $34-billion bid to buy rival Humana, citing in part concerns about competition in hundreds of Medicare advantage markets.

Goliath battle between consumers and mega insurers, a federal judge today ruled that Anthem's proposed acquisition of Cigna poses a clear and present threat to the quality, accessibility and affordability of health care in the United States, Dr. Andrew Gurman, the AMA president, said in a statement.

The Swedish company Electrolux and oil and gas service provider Haliburton both walked away from multi-billion-dollar deals after being sued by regulators.