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Anthem’s Cigna Takeover May Draw $3 Billion Blue Cross Fine

  • Blue products must drive most of insurer’s revenue under rules
  • Failure to meet threshold could spark fine for non-compliance
Updated on

Anthem Inc. could face a penalty of about $3 billion from the national Blue Cross Blue Shield Association if it fails to derive the bulk of its nationwide revenue from Blue-branded products after acquiring Cigna Corp., according to testimony from an Anthem executive during a U.S. antitrust trial in Washington.

Twenty-three percent of Cigna’s domestic revenue would need to be rebranded to comply with rules of the BCBS association, said Steve Schlegel, Anthem’s vice president for corporate development, under questioning Wednesday by a Justice Department lawyer.