Another day, another insurer saying it’s thinking about pulling out of the ACA exchanges. This time it’s Cigna, with its CEO David Cordani telling the Wall Street Journal that the exchange marketplaces are “unsustainable.” Currently, Cigna offers exchanges in seven states. The company hopes for some improvement in terms of revenue; it’s been losing money on the exchanges. Cigna has about 168,000 beneficiaries in its individual plans. It predicts that will grow by 100,000 this year. But for 2018, Cordani says “we will fully assess whether we will participate, where and how.”
Meanwhile, Cigna is waiting for a federal judge to rule on whether its planned $48 billion merger with Anthem breaks antitrust laws. It’s a strange case because the two companies don’t seem to like each other much, and their differences have been aired in court. One of the zanier of those differences, as reported by Managed Care last November, is that Anthem executives have tried to move forward unilaterally since Cigna ceased cooperating with them on various deal-related issues. Isn’t that sort of like doing marriage counseling solo?
Even presiding U.S. District Judge Amy Berman Jackson was stumped. “How do you work on integration without talking to the person you’re integrating with?” she asked.
Meanwhile, Cigna officials are uneasy about Anthem’s postmerger plans for the company that would be created in the merger.
This has not gone unnoticed by the Justice Department, which wants to make the companies’ discord an issue in the case, saying the bad blood would override any benefits from the merger.
Source: Wall Street Journal