Cigna scraps merger with Anthem, sues rival for $13 billion dollars

Doctor patient concern worryGerald Herbert/AP ImagesIn a Friday, May 6, 2016 photo, LSU medical student Felicia Venable, left, briefs fellow students and medical residents on a patient they are visiting during daily rounds with a group of medical residents and medical students at Our Lady of the Lake Regional Medical Center in Baton Rouge, La.

Cigna is done with its proposed merger with Anthem.

The health insurance company said it was terminating the merger with rival Anthem after a federal judge blocked the deal over anti-competitive grounds. The merger would have made the combined company the largest health insurer in the US based on the number of lives covered.

Additionally, Cigna will sue Anthem for a $US1.85 billion reverse break-up fee and an additional $US13 billion in damages according to Bloomberg.

One of the factors in the decision by a federal judge to block the merger was Cigna’s seeming distaste with the deal.

More to come…

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