HUM + CI merger by EOY 2023

Wow. Another big health insurer merger may occur. I am trying to get an article that isn’t paywalled for you. Hang tight.

This is courtesy of Yahoo:

Two of the biggest U.S. health insurers, Cigna and Humana, are in talks for what could be the largest merger announced this year, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

The companies are discussing a stock-and-cash deal that could be finalized by the end of the year, according to the report, without providing details on the deal value.

A Humana and Cigna combination would give the merged company the scale to rival UnitedHealth Group and CVS Health. Cigna’s large pharmacy benefit unit, which manages prescription drug plans, and its strength in commercial insurance would be joined with Humana’s strong position in the fast-growing market for Medicare Advantage plans.

Humana, which has a market value of roughly $63 billion, declined to comment. Officials at Cigna, which has a market value nearly $84 billion, did not respond to requests for comment.

The health insurance industry’s last round of consolidation was triggered by the Affordable Care Act of 2010, the national healthcare reform law that created new individual insurance options and expanded Medicaid. But some planned deals fell apart after push back from antitrust authorities.

In July 2016, the Justice Department filed lawsuits against two health insurance mergers on the same day. One was Anthem’s - now Elevance Health - planned purchase of Cigna. The second was Aetna’s proposed acquisition of Humana.

Both sets of companies fought the government and both lost. Cigna had tried to buy Humana before losing out to Aetna’s bid. Aetna was ultimately gobbled up by CVS Health.

Bill Baer, who was at the Justice Department when the 2016 lawsuits were filed, said that talk of Cigna and Humana merging was “surprising” given the government successfully stopped two big health insurance mergers just a few years ago.

Cigna’s shares were down more than 6%, while Humana’s stock was off by more than 2%.

Humana is the second biggest player in the market for Medicare Advantage plans. Cigna has a much smaller Medicare Advantage business which Reuters has previously reported was up for sale.

(Reporting by Manas Mishra in Bengaluru, Diane Bartz in Washington and Deena Beasley in Los Angeles Editing by Sriraj Kalluvila and Bill Berkrot)


Cigna has Rx + Commercial (what about ACA products? Is this included?)
Humana is big in Medicare

From another googling:
Cigna, which has been a long-standing provider of individual coverage under the ACA also known as Obamacare , has more than doubled such enrollment to 821,000 compared to 337,000 at the end of 2022

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Huh. Underpriced or staying in markets where other carriers have left?
Or, just great salesmanship? (Or, the online application is extremely easy?)

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finalized by EOY 2023? I’ll take the “over”

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Stank options a moving!


Dang I was looking forward to their new ticker symbol - CUM

Oh well


what do I win?


Cigna pulls out of blockbuster deal to create insurance giant with Humana
Sun, December 10, 2023 at 4:47 PM EST

US health insurer Cigna has abandoned plans to merge with Humana, a blockbuster transaction that would have created a $140bn insurance giant, according to people familiar with the matter. Disagreement over financial arrangements, regulatory fears and falling share prices following reports of the potential tie-up drove Cigna’s decision to halt plans, the people said. The end of merger talks comes as Cigna prioritises stock buybacks.

i may have lost on a technicality - it sounds “finalized” but not in the direction they led us to believe.