On its front page, the Wall Street Journal (2/14, A1, Mathews, Kendall, Subscription Publication) reports Aetna and Humana called off their proposed $34 billion merger in a mutual agreement, which requires Aetna to pay Humana a $1 billion breakup fee. Meanwhile, Cigna called off its proposed $54 billion merger with Anthem, and filed a lawsuit against Anthem seeking damages of over $13 billion.
The AP (2/14, Murphy) explains that a federal judge blocked the proposed merger between Anthem and Cigna. The article points out that if the Aetna-Humana merger and the Anthem-Cigna mergers had both gone through, then four of the “nation’s five largest insurers” would have been replaced by two even bigger insurers.
Reuters (2/14, Humer) points out that both deals were announced during the summer of 2015 then challenged by the US Department of Justice nearly a year later.