Anthem's $48 Billion Cigna Bid Denied as Anticompetitive

Anthem's $48 Billion Cigna Bid Denied as Anticompetitive

Assessment

Interactive Video

Business, Social Studies

University

Hard

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FREE Resource

The video discusses the blocked $48 billion merger between Anthem and Cigna, highlighting the judge's decision based on reduced competition and lack of cooperation between the companies. The market anticipated this outcome, and Anthem plans to appeal. The case reflects broader trends in healthcare consolidation and antitrust enforcement, with implications for consumer prices and options. The discussion also touches on the continuity of antitrust policies between the Obama and Trump administrations.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was one of the main reasons the judge blocked the Anthem-Cigna merger?

The companies had a harmonious relationship.

It would increase competition.

It would reduce competition and harm consumers.

The merger was too small to matter.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What did Anthem decide to do after the merger was blocked?

They decided to merge with another company.

They chose to appeal the decision.

They decided to pay the breakup fee immediately.

They accepted the decision without any further action.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What financial consequence does Anthem face if the merger fails completely?

They will lose their market share.

They will have to pay a fine to the government.

They will owe Cigna a $1.85 billion breakup fee.

They will receive a breakup fee from Cigna.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the blocking of the Anthem-Cigna merger suggest about antitrust enforcement under the Trump administration?

It suggests no clear direction in antitrust enforcement.

It shows a lenient approach towards mergers.

It indicates a continuation of previous administration's policies.

It suggests a complete overhaul of antitrust policies.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How might blocking the merger benefit consumers?

By reducing the number of insurance options.

By allowing companies to set higher prices.

By increasing competition and keeping prices lower.

By limiting consumer choices.