Yesterday marked the first day that the Department of Justice's antitrust case against the pending Anthem-Cigna merger went to trial. Reuters delved into the attorneys' opening arguments, which will set the stage for each party's case as the trial moves forward.
Here are five key thoughts:
1. An Anthem lawyer first argued that the deal would create an entity with the power to slash prices for consumers.
2. The DOJ's attorney Jon Jacobs, JD, said, "Efficiencies don't count if the only way you get them is more market power."
3. Mr. Jacobs also said the deal's fallout could entail fewer companies selling coverage to large, national employers that require a broad network of services.
4. In response to Mr. Jacobs' claim, Anthem's attorney Christopher Curran, JD, said, "The notion that these Fortune 500 companies are going to be victimized here ... is not realistic."
5. Mr. Curran also said the DOJ did not consider that employees can choose coverage from multiple payers on new online private exchanges.