Analysis Group and Affiliate David Dranove Provide Economic Analysis in Important DOJ Win

February 17, 2017

In a 12-page order, U.S. District Judge Amy Berman Jackson ruled in favor of the U.S. Department of Justice, enjoining the proposed merger of Anthem and Cigna, the 2nd and 3rd largest health insurers in the United States. Dr. David Dranove (Northwestern University), an affiliate of Analysis Group, testified multiple times during the trial as the DOJ's economic expert, providing both affirmative testimony as well as rebuttal testimony to the merging parties' three economic experts.

In her order, Judge Jackson concluded that the merger would substantially lessen competition in the national accounts market, as well as in at least one local market (Richmond, VA). As the DOJ's primary expert witness, Dr. Dranove testified on market definition, the impact on market concentration, competitive effects including the loss of innovation, the impact on medical costs, and entry.  Judge Jackson concluded that the DOJ had met its burden in the case, in the market for national accounts and in at least one local market.

Supporting Dr. Dranove in this case was a team of Analysis Group consultants in Boston and Chicago, including, among others, CEO and Chairman Martha Samuelson, Managing Principal Jeff Cohen, Vice Presidents Samuel Weglein, Dov Rothman, Noam Kirson, Maria Lauve, and Brad Rice, and Manager Maria Garibotti.