A planned merger between insurers Anthem and Cigna is on the rocks, with a federal judge expected to block it.
Cigna said in a regulatory filing Thursday that it is going to look at its options after a court rules on the federal government’s lawsuit to block the deal over antitrust concerns. Anthem wanted to give more time for Cigna to decide whether it wanted to back out, issuing a regulatory filing on Thursday that extended a deadline for a termination agreement from Jan. 31 to April 30.
If the merger ends, it could have lasting ramifications for Obamacare’s exchanges, as Anthem and Cigna have remained committed to the marketplaces while other major insurers have largely bolted.
The two insurers have said the merger could help the volatile marketplaces, which have seen higher premiums for 2017 because of higher claims costs and lower competition.
Anthem’s CEO has said the merger could bring stability to the marketplaces.
The New York Post is reporting that the federal judge in the case is expected to rule as early as Thursday to block the merger after the trial ended Wednesday.
The ruling could be appealed, but it is not clear if Cigna wants to continue.
Anthem said in its filing to extend the deadline that it needed more time to “consummate the merger … regardless of the outcome of the District Court’s proceedings.”
Anthem has been a stalwart participant in the exchanges despite not generating profits. Cigna had planned to expand its presence on the exchanges for 2017 to 10 states but instead decided to remain in just seven due to mounting losses.
Anthem and Cigna aren’t the only insurance giants aiming to merge.
The Justice Department also filed a lawsuit in June to block the merger of Aetna and Humana, both of which have shrunk their presence in Obamacare this year.
A trial has wrapped up on that merger as well. Aetna and Humana have until Feb. 15 to decide whether they want to terminate the merger.
