Anthem, Cigna Talking as Centene Makes Deal

via Wall Street Journal

Health insurer Anthem has been trying to combine with Cigna for nearly a year.

Health insurers continued their mating dances, with giants Anthem Inc. and Cigna Corp. rekindling their talks to combine, and smaller Centene Corp. agreeing to buy Health Net Inc. for around $6.3 billion.

Representatives of Anthem and Cigna met this past Friday and Tuesday to discuss a potential tie-up, said people familiar with the matter. They said a deal could be reached in coming weeks, though there is no guarantee the latest round of talks will result in a merger.

Anthem has been trying to combine with Cigna for nearly a year, but the two companies have struggled to agree on price and other terms, including who would run the combined company. Last month, in an attempt to woo Cigna shareholders, Anthem made public an offer of $47.5 billion, which Cigna publicly spurned.

The talks are part of a flurry of discussions among the top five health insurers aimed at striking deals that will enable them to be more competitive in a health-care landscape dramatically altered by the Affordable Care Act and other developments..

To read the full article CLICK HERE

Advertisements

About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
This entry was posted in Uncategorized. Bookmark the permalink.