Dive Brief:
- Humana, whose Chief Financial Officer was scheduled to speak at the Goldman Sachs Global HealthCare conference on Wednesday, has decided to withdraw from the meeting.
- The decision is fueling speculation on Wall Street of a potential merger.
- After the Wall Street Journal first broke the story about the potential merger, Humana shares rose to an all-time high. They went up another 2% after it pulled out of the conference on Monday.
Dive Insight:
Humana has been contacted by multiple analysts and investors asking about a possible merger, but is refusing to comment. The insurer said not commenting on speculation is a long-standing policy and it will observe a quiet period until it announces second-quarter results in late July.
Humana is the second largest provider of Medicare Advantage Plans in the US, which is what makes it such an attractive prospect for potential buyers. Medicare Advantage Plans are expected to be a key source of growth for insurers as the baby boomers continue to age.