Justice Dept. Action on Insurer Deals May Come This Week

The DOJ's Antitrust Division is concerned about two major insurance mergers: Aetna's bid for Humana and Anthem's attempt to acquire Cigna. These deals could reduce competition, affecting consumers negatively. The DOJ may file lawsuits if settlements aren't reached soon. Political factors, like the upcoming election, might influence proceedings, though the DOJ claims impartiality. Market reactions show a decline in share prices for Humana and Cigna. Companies might consider divesting assets to address regulatory concerns, but challenges exist, especially for Anthem and Cigna, due to the limited number of national market players.

What is the primary concern of the Justice Department regarding the Aetna and Anthem mergers?

• They will reduce competition in the market.

• They will improve consumer choices.

• They will lead to job losses.

• They will increase insurance premiums.

What is the next step if the lawsuits regarding the mergers are not settled?

• The companies will automatically merge.

• A judge will decide the outcome.

• The DOJ will drop the case.

• The companies will be fined.

How might the upcoming election influence the DOJ's actions on these mergers?

• The DOJ will expedite the process.

• The DOJ claims to be nonpartisan and unaffected.

• The DOJ will delay any decisions.

• The DOJ will consult with political leaders.

What strategy is Aetna considering to address regulatory concerns?

• Merging with another company.

• Selling parts of their Medicare Advantage assets.

• Expanding their business operations.

• Increasing insurance premiums.

Why is it challenging for Anthem and Cigna to divest assets?

• They are unwilling to sell any part of their business.

• There are few companies that can serve large national employers.

• They have already divested all possible assets.

• They have no valuable assets to divest.