Words were flying—and spinning—at Aetna, Cigna, Anthem and Humana on Thursday. There was plenty of wordsmithing from the U.S. Department of Justice, too.
Communicators and executives issued strongly worded statements following a press conference led by U.S. Attorney General Loretta Lynch. Lynch filed an antitrust lawsuit against the four behemoth insurers to halt the deals that would “harm millions of Americans, raise prices and eliminate competition.”
At a press conference, the AG blasted the proposed deals. CNN.com reported:
If the two mergers proceed, Anthem will insure 53 million members, and Aetna would cover 33 million. That would drop the number of health insurance providers from five major players to three— United Health is the other major provider. Lynch said that if the "big five became the big three," then Americans and their bank accounts would suffer. She also said the mergers would come at the expense of members and doctors.
A variety of comments followed the CNN tweet:
Anthem and Aetna each released statements that said they are committed to fighting the suits.
A blistering press release from Anthem’s Investor Relations, read, in part:
Today’s action by the Department of Justice is an unfortunate and misguided step backward for access to affordable healthcare for America. Access to health insurance saves lives, improves health and reduces the cost of care for all Americans. The DOJ’s action is based on a flawed analysis and misunderstanding of the dynamic, competitive and highly regulated healthcare landscape and is inconsistent with the way that the DOJ has reviewed past healthcare transactions. Anthem has an unwavering commitment to enhancing access to affordable healthcare and the benefits and efficiencies from its merger with Cigna is one way that Anthem will continue its mission of improving consumer choice, quality and affordability.
Financial communicators: Engage your financial customers without crossing regulatory lines.
Potential partners and some splintered messages
Cigna had a more cynical statement:
Given the nature of the concerns raised by the DOJ and the overall status of the regulatory process, which under the terms of the merger agreement was led by Anthem, Cigna is currently evaluating its options consistent with its obligations under the agreement. In light of the DOJ's decision, we do not believe the transaction will close in 2016, and the earliest it could close is 2017, if at all.
The other two insurers—Aetna and Humana—issued a joint statement with a gentler tone. The headline said the companies would “vigorously defend” their pending $37 billion deal. The announcement featured bullet points and benefits the companies say will improve the marketplace.
A combined company is in the best interest of consumers, particularly seniors seeking affordable, high-quality Medicare Advantage plans. The Aetna-Humana transaction offers tremendous value to consumers…
States join the fray
Twelve states have joined the Justice Department’s suit, including New Hampshire. The Concord Monitor reported Thursday:
“New competitors have found New Hampshire to be a difficult market to enter, and if the merger were to take place, it may take years for competition to return to its current level,” said New Hampshire attorney general Joe Foster in a prepared statement about the Anthem-Cigna lawsuit. “In the meantime, to the detriment of New Hampshire consumers, innovation in cost control and delivery of services is likely to suffer.”
State and federal regulators, along with physicians groups, have been prepared for Thursday’s news. Chatter surfaced months ago on Twitter:
The ABCs of health care messaging may have centered on affordability, benefits and choices. However, Assistant Attorney General William Baer covered the letter ‘Z’ when he said his office had "zero confidence" that the four mergers would benefit consumers.
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