Anthem insurer’s CEO to step down amid failed acquisition talks

The top executive at Anthem Inc., the second-largest health insurer in the U.S., will step down after the company failed to acquire a rival company. 

Joseph R. Swedish, the company’s CEO, will be replaced by Gail K. Boudreaux, who previously headed the nation’s largest insurer, UnitedHealth Group Inc.

The company’s transition plan could be announced as early as next week, the Wall Street Journal reported. 

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Swedish led Anthem in an effort to buy Cigna Corp., a health industry rival, which was ultimately shut down in court due to antitrust concerns raised by its defense attorneys.

Anthem and Cigna are now embroiled in litigation, each suing the other for billions of dollars over the negotiations regarding the acquisition agreement. The larger company alleged that Cigna’s executives deliberately torched the plan.

Swedish also led the insurer’s move to pull out of the ObamaCare state insurance exchanges, as the market became unstable amid GOP attempts to repeal the law and replace it.

Anthem has pushed the Trump administration to assure them that ObamaCare subsidies for companies contributing to the market will continue despite calls for the system to be abolished.