Insurers’ Merger Clears Justice Dept. Hurdle

Federal regulators said the pending health insurance merger of WellPoint Health Networks Inc. and Anthem Inc. would not hurt competition or consumers.

In its first public comments on its antitrust review, the Justice Department said the merger creating the nation’s largest managed care provider would not give the company greater power to increase prices or reduce service quality.

Consumer advocates say the merger of the two biggest Blue Cross Blue Shield licensees could erode consumer choice within some of the 13 states where the companies have about 26 million members. Insurance commissioners in each of those states are expected to conduct reviews in coming months.

Shares of Thousand Oaks-based WellPoint closed down $1.12 to $110.32, while Indianapolis-based Anthem closed down $1.14 to $87.63. Both trade on the New York Stock Exchange.