US: Cigna CEO takes a stand in Anthem-Cigna antitrust trial

The Justice Department and health insurer Anthem each sought to score points Tuesday when Cigna Chief Executive David Cordani took the witness stand in a trial that will determine the fate of the two companies’ proposed merger.

Mr. Cordani’s testimony, which came on day two of the government’s legal challenge to the deal, was important for both sides, especially in light of tensions between Anthem and Cigna, which have accused each other of breaching their merger agreement.

Under Justice Department questioning, Mr. Cordani said Cigna was an innovative player in the industry that focused on patient outcomes instead of flat fees for medical services. Part of the department’s case is built on the argument that the public could lose this innovation if Cigna is bought by Anthem.

Mr. Cordani also said the proposed deal was a large and complex one, and integrating the two companies would be complicated.

Anthem on Tuesday sought to stress that Cigna’s innovation is one of the reasons it wants to buy the company, so it can extend new services and fresh health-care approaches to more people.

Under questioning from an Anthem lawyer, Mr. Cordani said Cigna wanted to spread its value-based approach to a larger patient population, and he said doctors and hospitals would benefit from that.

So, Anthem lawyer Christopher Curran asked, the proposed merger would accelerate these benefits? “That was the objective on day one” of the deal, Mr. Cordani responded. He didn’t say if it continued to be Cigna’s objective today.

Full Content: The Wall Street Journal

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