RICHMOND, Va. (WRIC) — Insurance giant Anthem’s bid to purchase rival insurer Cigna has failed after a Federal judge rejected the merger.
The judge says he blocked the $48 billion merger because he said he believed it would likely lead to higher costs, less competition and diminished innovation.
Anthem now owes Cigna a $1.9 billion “break-up fee” under the terms of the agreement they reached in July 2015.
Anthem is by far Virginia’s largest health insurance provider, covering nearly 3 million people under the Blue Cross-Blue Shield name.
An Anthem spokesperson says company officials are reviewing the decision.
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