Feds reportedly preparing to block health insurer mergers

Feds reportedly preparing to block health insurer mergers
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U.S. antitrust officials are planning to take legal action to block a pair of high-profile health insurer mergers, according to a report by Bloomberg News.

Officials within the Justice Department reportedly have concerns about the lack of competition that could result from the nation's five biggest insurers becoming just three. 

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Anthem Inc. has sought to acquire Cigna Corp in a $48 billion deal that would overtake UnitedHealthcare as the country’s largest insurer. Another healthcare giant, Aetna Inc., has proposed a $37 billion takeover of Humana Inc.

A final decision will be announced by next week, according to Bloomberg.

Federal and state antitrust officials have for months delivered warnings about the two deals, with one California insurance regulator Dave Jones urging the Justice Department to block both mergers to avert major cost increases for consumers.

Other state regulators in New York and California have both given a tentative green light, however.

National officials, including Democratic senators, have also raised major concerns about the deal. The party’s presumptive presidential nominee, Hillary ClintonHillary Rodham ClintonObama should pardon Snowden as well as Manning Trump could mean new momentum for drug imports Trump puts pressure on GOP Congress MORE, has said she would seek to block the mergers.