The Florida Office of Insurance Regulation issued a consentorder approving, with additional requirements, 's application to acquirethe issued and outstanding voting securities of HealthSpring of Florida Inc. d/b/a Leon Medical CentersHealth Plans, Cigna Dental Healthof Florida Inc. and Cigna HealthCare of Florida Inc.
The deal is part of Anthem's pending of
The office determined that there would not be a"meaningful adverse competitive effect as a result of the proposedacquisition, even under the most conservative estimation."
The approval followed a public hearing held Dec. 8, 2015,and a survey of the market segments that will be affected by the deal. Based onthe office economist's review of market data, the deal would not increasemarket concentration in Florida. The review also showed that Anthem and Cignacompete only in the Medicare Advantage product market and the combined entitywould not have a material impact on competition.
The office cited as an area of potential competitive concernthe impact of restrictions in Anthem's license agreement with Blue Cross BlueShield Association. Under the license, Anthem is required to have at leasttwo-thirds of its national business branded as "Blue." If the"Blue" business drops below the required limit, the concern is thatit could limit growth of the Cigna companies. However, the office determinedthat the issue would not have a significant impact on the companies' ability togrow in Florida, considering the time given by Blue Cross Blue ShieldAssociation to Anthem to comply with the requirement and the number of optionsopen to Anthem.
To secure the approval, Anthem agreed to monitor and enhanceits Information Security Program to mitigate data security breaches. Inaddition, Cigna's Florida-based health maintenance organizations must stay incompliance with capital and surplus requirements and risk-based capitalstandards.
Anthem's pending acquisition of Cigna is still subject toreview by the U.S. Department of Justice and the Florida attorney general.