California blasts Anthem-Cigna merger, calls on feds to block it

California’s top insurance regulator has urged the U.S. Justice Department to kill the pending $53 billion transaction between health insurance titans Anthem and Cigna Corp. over concerns of higher prices and lower quality plans. California Insurance Commissioner Dave Jones,  said Anthem has made “vague, speculative and impossible-to-verify assertions” related to the benefits of the deal. “Anthem and Cigna failed to provide details to support their claim of $2 billion in savings, and they refused to guarantee consumers and businesses will see the benefit of any potential savings in reduced prices,” Jones said in a statement. “More competition in California’s consolidated health insurance markets is needed, not less.” In a 22-page letter to top Justice Department leaders, Jones said the “most extreme” example of where Anthem’s deal would lessen competition is the self-insured employer market. Anthem and Cigna control a combined 61% of that market. Many large, self-insured companies have expressed similar concerns over Anthem’s acquisition. California is the first state to oppose Anthem’s deal, and it’s by far the most aggressive stance of any regulator toward the pending healthcare mergers.