A federal judge ruled against Cigna in the Bloomfield-based insurer’s attempt to back out of a $48 billion merger agreement, as Anthem appeals an earlier ruling barring the combination after the U.S. Department of Justice sued on grounds it would harm competition.
On Tuesday, Cigna announced plans to abandon the deal and sued Anthem in Delaware Chancery Court for $1.9 billion, representing a breakup fee it says it was contractually due as well as $13 billion more representing premiums it claims it would have tallied in the months since striking the deal. Anthem promptly countersued to force Cigna to adhere to the agreement while it pursues an appeal.
Indianapolis-based Anthem has the largest health insurance policy base of any carrier in Connecticut, with about half the market; combined with Cigna it would have nearly two-thirds of all policies underwritten by health insurers.
Date:February 16, 2017