Judge rejects Anthem’s proposal to buy Cigna

SACRAMENTO — A federal judge Wednesday rejected Anthem Inc.’s bid to buy rival health insurer Cigna Corp., saying the merger would be likely to lead to higher costs, less competition and diminished innovation.

Anthem has negotiated lower payments to doctors and hospitals, while Cigna has higher upfront expenses for wellness in the hopes of reducing future health expenses.

Last month, another federal judge rejected Aetna’s roughly $34-billion bid to buy rival Humana, citing in part concerns about competition in hundreds of Medicare advantage markets.