Anthem/Cigna ruling upheld on appeal Business briefing Restaurant calorie counts on hold? Employment costs grow steadily

A federal appeals court Friday left in place a decision blocking Anthem's bid to buy rival health insurer Cigna.

The 2-1 decision by the U.S. Court of Appeals for the District of Columbia Circuit upholds a federal judge's ruling in February that said the proposed $48 billion acquisition would reduce competition in the concentrated insurance market.

Anthem argued the merger would save $2.4 billion in medical costs and lead to lower consumer premiums. But the Justice Department said Anthem had no real plan to reach those savings. The government sued last summer to block the deal amid concerns over its effect on prices and consumer choices.

Cigna has filed a separate lawsuit seeking a $1.85 billion termination fee from Anthem and billions more in damages that include the amount Cigna shareholders would have received if the merger hadn't failed.

Consumer groups had opposed the merger, saying it would have a negative impact on consumers and lead to fewer choices.

Industry experts suggested any effect on consumers from the deal would take years to materialize and could lead to savings in some areas but higher costs elsewhere.

Restaurant calorie counts on hold?

Consumers hoping to find out how many calories are in that burger and fries may have to wait - again.

New government rules to help people find out how many calories are in their restaurant meals are set to go into effect next week after years of delays. But they could be pushed back again if grocery stores, convenience stores and pizza delivery chains get their way.

Originally passed as part of the health care overhaul in 2010, the law requires restaurants and other establishments that sell prepared foods and have 20 or more locations to post the calorie content of food "clearly and conspicuously" on their menus, menu boards and displays. The restaurant industry has backed the law.

Employment costs grow steadily

Wages and benefits paid to U.S. civilian workers grew steadily in the first three months of the year.

The Employment Cost Index, which tracks wages and benefits, was up 0.8 percent in the first quarter, the Labor Department said Friday, That's the biggest quarterly growth since December 2007 and slightly faster than the 0.5 percent growth in the last quarter of 2016.

Wages and salaries, which account for 70 percent of compensation costs, rose 0.8 percent. Benefit costs, which cover pensions and health insurance, increased 0.7 percent. The index has shown improvement as the unemployment rate has fallen to 4.5 percent.

THE BOTTOM LINE

$2.6B That's General Motors' first-quarter net income, a record amount reached as people are buying more SUVs and trucks and paying GM handsomely for them. U.S. sales of large truck-based SUVs such as the Chevrolet Tahoe rose nearly 15 percent for the quarter to almost 54,000. Pickup truck and van sales were up 1 percent to 238,000, and sales of smaller SUVs rose 16 percent to nearly 219,000, according to GM.

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