AMA urges DOJ to reject offers to settle Anthem-CIGNA litigation

The American Medical Association (AMA) has sent a letter to the U.S. Department of Justice (JOJ) to express its alarm “regarding recent statements by Anthem, made in the Delaware Court of Chancery, asserting that the company expects to close its merger transaction with CIGNA through ‘resolution with a new DOJ.’”

In his February 28 letter, AMA Executive Vice President and CEO James L. Madara, M.D., said that, “We find it implausible that the [DOJ], eleven states, and the District of Columbia – that have diligently and successfully prosecuted this antitrust merger case – could now be swayed to allow this merger to close pursuant to politically-driven settlement negotiations as Anthem has suggested.”

He also stressed that, “To do so would cause irreparable harm to the integrity of the federal courts to adjudicate anticompetitive behavior in a fair and impartial manner, leaving consumers at risk.”

Dr. Madara concluded by urging DOJ to “vigorously defend” a court ruling that found that the proposed merger would “likely have a substantial adverse effect on competition in what is already a highly-concentrated market.”

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