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Business

DOJ set to block two major health care mergers

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Opening sequence

Business

DOJ set to block two major health care mergers

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COMING UP:DOJ set to block two major health care mergers

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Transcript

00:00:01
>> Two of the biggest health insurance deals ever, appear to be in jeopardy. A source telling Reuters that US anti-trust officials will move to block Anthems proposed acquisition of Cigna, and Aetna's takeover of Humana. Deals worth a combined $82 billion. Reuters correspondent Caroline Humer.>> The Justice Department is concerned about prices going up for consumers.
00:00:23
They're very concerned, in general, in the government, right now, about health care prices. We've got staggering drug price increases, hospitals cost more, and they don't want a consolidation in the health insurance industry to add to that burden. The deals would reduce the number of large health insurers from five to just three.
00:00:40
The company's justification that costs and taxes associated with Obamacare have left them with no other choice. But it's clear, Washington does not want the deals to go through, worried that they'll lead to higher prices right at the time the White House has made Obamacare and lower prices a priority.
00:00:57
Humer says, it's clear the DOJ wants the leaks to be made public.>> I think this is really political. I think that the government wanted this news out there. I think they want the markets prepared. And, I think that they're managing it in a different way than they've ever done before, because it's two deals, not one.
00:01:15
So it's gonna be quite a big market impact.>> The Department of Justice could make a formal announcement as soon as this week. The stocks of all four companies tumbled in Tuesday trading.