“Potential Merger Talks Between US Health Insurers Humana and Cigna” – Insider Source

Cigna, A Major American Health Insurer, Reportedly in Merger Talks With Humana
New York City, U.S., November 30, 2021 – There are discussions currently taking place between Cigna, a major U.S. health insurer, and Humana, according to a source familiar with the matter. If the talks are successful, this would represent a significant move for Cigna, as it would give them a much larger stake in the rapidly growing market for managing federal Medicare plans for older Americans. Both companies are considering a stock-and-cash deal, with the potential for completion by the end of the year.

A merger between Cigna and Humana would create a company of significant scale and rival UnitedHealth Group and CVS Health. Cigna’s large pharmacy benefit unit, Express Scripts, would be combined with Humana’s strong position in the Medicare Advantage market.

Neither Humana nor Cigna have made any official comments on this matter. However, it’s been reported that Humana currently has a market value of roughly $63 billion, while Cigna’s valuation is nearly $84 billion. The potential acquisition, while beneficial, would also present an expensive endeavor for Humana due to their higher price-to-earnings ratio.

The health insurance industry’s last major consolidation took place following the passing of the Affordable Care Act in 2010, which reshaped the landscape of American healthcare. In 2016, two significant deals involving health insurance companies faced opposition from antitrust authorities.

Although the talks of a merger have surprised many in the industry, raising concerns about regulatory hurdles, industry experts are closely watching the developments unfold. As stakeholders eagerly await the resolution of this impending deal, we anticipate further news and additional details to emerge in the coming weeks.

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