Trial: Anthem denies it would 'drop hammer' on providers
Department of Justice asserts Anthem would use its clout to get lower reimbursement rates from hospitals, doctors.
During the second day of trial Tuesday, Anthem denied the Department of Justice's assertion that it would "drop the hammer" on healthcare providers by using its clout to pay lower rates should its $54 billion merger with Cigna be approved.
Anthem CEO Joseph Swedish took the stand and said he would not use the terminology "dropping the hammer" to describe insurers that push for discounts from hospitals and doctors for health services, according to the Wall Street Journal.
Anthem and Cigna have conflicting strategies, according to the DOJ. Cigna collaborates with doctors while others, such as Anthem "drop the hammer," Bloomberg reported.
[Also: Anthem, Cigna trial starts as AMA comes out against the mega-merger]
This was after an Anthem attorney said the combined company would be able to lower rates paid to healthcare providers and that these savings would be passed on to employers.
Swedish told the court that Anthem wouldn't use its market power to get discounted reimbursement rates, saying, "We don't live in a discount world anymore," according to Bloomberg.
Judge Amy Berman Jackson then reminded the CEO that reducing costs was central to Anthem's defense.
[Also: Analysts are split on how Trump presidency will impact Anthem-Cigna, Aetna-Humana mergers]
Anthem has proposed buying Cigna for $54 billion, a move blocked in July by the Department of Justice over antitrust and anti-competitive concerns.
Anthem's bid for consolidation is being heard in two parts. The first, which started Monday, is taking a look at the merger's effect on the national insurance market.
Anthem Attorney Christopher Curran said there's competition in the market because large employers can use regional insurers, as well as national networks.
[Also: Feds accuse Aetna/Humana attempting to derail merger challenge by blocking CMS defendants]
The second part of the trial is expected to begin in mid-December, and will look at regional implications of a combined Anthem-Cigna, a deal considered the largest in the industry.
The DOJ has also blocked the $37 billion consolidation of Aetna and Humana. Trial gets underway in that case, under a separate judge, on Dec. 5.
Twitter: @SusanJMorse
