First phase of Anthem-Cigna merger trial ends, with no decision

The first phase of the Anthem-Cigna merger trial ended Tuesday with U.S. District Court Judge Amy Berman Jackson making no decision whether to allow the $48 billion deal to go through.

The first phase concentrated on the national implications of the merger. The second phase, which starts Wednesday, will look at the regional implications.

Jackson could issue a ruling on the first phase over the effect on the national insurance market prior to making a decision on the second phase.

A different judge is currently hearing arguments in the trial over the proposed $37 billion merger between Aetna and Humana.

The Department of Justice is attempting to halt both mergers citing antitrust and anti-competitive concerns. In July, the DOJ brought an injunction against the proposals.

[Also: AMA wants court to block Aetna-Humana merger]

The mergers would bring the top five insurers down to three, including UnitedHealth. The Aetna-Humana trial centers on Medicare Advantage, a market that the combined company would dominate should the merger go through.

The DOJ wrapped up its arguments in the first phase of the Anthem-Cigna trial on Tuesday, after Anthem released a report on market-share data.

Jackson called Anthem's calculations "distressing," saying the filing undercut the insurer's argument that its acquisition of Cigna would not hurt competition, according to Insurance Journal.

Cigna operates in 14 states where Anthem also does business.  Justice Department lawyer Jon Jacobs said Cigna's presence in those states has kept down prices for employers, according to Insurance Journal.

[Also: Unsealed merger trial documents show rift between Anthem, Cigna]

Industry experts have given the Aetna and Humana merger a better chance of approval than Anthem and Cigna, in which both CEOs have been sparring prior to trial.

Each has accused the other of breaking the terms of the merger agreement. During the trial, documents came to light showing how far off the rails their mutual understanding had gone. Cigna CEO David Cordani said that after the DOJ's injunction, Cigna stopped merger efforts, while Anthem CEO Joseph Swedish continued the process using a secret team and questioned whether Cordani would have a role in the new consolidated company.

[Also: Analysts are split on how Trump presidency will impact Anthem-Cigna, Aetna-Humana mergers]

Anthem has countered that its acquisition of Cigna would allow for efficiencies resulting in lower reimbursement rates to providers, with those savings passed on to employers.

In contrast, Humana CEO Bruce Broussard has painted his relationship with Aetna in glowing, almost romantic terms, telling the judge Tuesday that he and Aetna CEO Mark Bertolini hit it off when they first met.

"We almost finished each other's sentences," Broussard said, according to Bloomberg.

Twitter: @SusanJMorse