On Thursday a judge in Delaware ruled that Cigna could walk away from its merger with Anthem. On the surface this seems like a win for patients. After all, provider networks were already restricted and premiums high; keeping competition in the marketplace is always good for consumers.
However, even in this the insurance companies are looking to their bottom lines. You see, if the merger didn’t go through, Cigna could be awarded $1.85 billion in break-up fees as specified in the merger agreement. Anthem is fighting this and seeking damages of its own.
The question is: who is going to really pay these break-up fees?
You will, or rather the premium holders for the losing company. These break-up fees or other damages will come out of premiums. So when you write your check for your health insurance premium each month you’ll be paying this money.
Why should you? More importantly, why won’t someone do something to stop these egregious uses of your premium dollars for anything other than your health care?