Dive Brief:
- Cigna CEO David Cordani is defending the company's proposed merger with Anthem against concers major industry consolidation--which may also include the proposed merger of Aetna and Humana--will excessively reduce competition.
- Cigna's plans have recently come under fire from the American Medical Association and the American Hospital Association and were reviewed by a Congressional hearing last week.
- Cordani told Reuters a detailed review will reveal few competitive issues.
Dive Insight:
Cordani argues the deal is not just in Cigna's interest, but that of healthcare consumers as well.
"It's going to increase choice, not decrease choice. It's going to increase affordability, not decrease affordability," he told Reuters. He says results-oriented contracts with providers will lead to improved consumer health and lower medical spending.
Cordani does see some potential asset sales necessary in order to obtain regulatory approval, but did not discuss what those might be.
"Divestitures through the DOJ process should be modest and manageable," he said, "And we've leaned on the conservative side of the business case that supports this."
Another Congressional hearing on insurer competition is slated for the Senate next week. Cigna expects the DOJ review to range from 12 to 18 months.