Connecticut to Play Key Role in Anthem/Cigna Deal

Connecticut’s Department of Insurance is playing a major role in a deal that would create the nation’s largest health insurer.

Since Cigna is based in Bloomfield, Connecticut, the state insurance regulators are leading a 26-state review of Anthem Inc.’s proposed merger with Cigna.

The agency is tasked with coordinating the review by other states with legal Cigna entities, informing them about Connecticut’s evaluation of the massive merger, and hosting conference calls between the various state regulators.

“This transaction has a large number of states,” said Connecticut Insurance Commissioner Katharine Wade. “Having 26 states involved, coordinating among regulators, is significant.” The department will hold a public hearing on the merger sometime next year.

The two insurers said they are confident that the state regulators will see the merits of the deal and that they will approve it.

The application process for the proposed merger includes multiple steps, including approvals from shareholders. The U.S. Justice Department is reviewing Anthem’s planned $54.2 billion acquisition of Cigna to determine whether the merger will hurt competition and consumers. About 53 million customers could be affected.

Connecticut Sen. Richard Blumenthal wants federal authorities to review the Anthem/Cigna merger in conjunction with the proposed Aetna/Humana merger. He’s concerned about the effect on competition and consumers.