As the merger trial between the Department of Justice, Aetna and Humana wrapped up in Washington, D.C. last week, the two insurers agreed to extend their Dec. 31 deadline to Feb. 15, according to a filing with the Securities and Exchange Commission.
U.S. District Court Judge John Bates is not expected to make a decision in the case by the end of the year. By agreement, without the extension, Aetna would have to pay Humana a $1 billion breakup fee if the $37 billion merger was not finalize by the end of December.
This was the second deadline extension, from an original date of June 30.
The trial began Monday Dec. 5 and ended Wednesday, Dec. 21, the day the two insurers agreed on the extension.
The case hinged on competition in the Medicare Advantage market, in which a combined Aetna/Humana would become a dominate player.
While Aetna CEO Mark Bertolini stressed the efficiencies gained from a combined entity, the DOJ said the claimed efficiencies did not outweigh the competitive harm.
Aetna is a particularly aggressive competitor, the Justice Department said in its closing statement. Humana is its most formidable competitor, the DOJ said, quoting a statement from Nancy Cocozza, head of Medicare at Aetna.
While Aetna said it would relieve concerns by a divestiture to Molina, that is risky as Molina has allegedly failed at individual Medicare Advantage in the past, the DOJ said.
[Also: AMA wants court to block Aetna-Humana merger]
The DOJ also made a link between Aetna's original plan on July 19 to expand its Affordable Care Act product to 20 states to Bertolini threatening to reduce the company's exchange footprint if the Justice Department filed the complaint against the merger, as it did on July 21, to Aetna reducing its ACA product.
Bertolini reiterated that the company was losing money in the ACA, and did not withdraw, as the federal government contended, as retaliation for the lawsuit.
A DOJ injunction against a $54 million proposed merger between Anthem and Cigna was also heard in federal court this month, with no decision in that case.
[Also: Unsealed merger trial documents show rift between Anthem, Cigna]
Twitter: @SusanJMorse