It is official, Anthem to buy Cigna, potentially creating the largest health insurer in the U.S.
The deal combines the second – and fourth – biggest insurers in the U.S., measured by members, and would have estimated revenue of about $115 billion and serve more than 53 million people with medical coverage.
Anthems announcement to buy Cigna comes on the heels of two other health care industry mergers: Humana and Aetna Inc. agreed to buy Humana Inc. for $35 billion earlier this month, a day after Centene Corp. struck a $6.3 billion deal for Health Net Inc.. If all the transactions are completed, the number of major health insurers in the United States will shrink to three including UnitedHealth Group. UnitedHealth Group Inc., currently the largest U.S. health insurer and the only one of the big five without a merger partner.
As the New Your Times sates, “Health insurers are seeking to consolidate to gain greater scale to reduce costs and capitalize on growing opportunities in the government and individual markets.” The Washington Post adds, “While the deals make business sense, it is far less clear what impact the mergers will have on customers.” Bloomberg Business notes, “The deals are certain to attract close scrutiny from antitrust regulators.”
Follow Dell & Schafer as we dig into what the mergers mean for you.