Dive Brief:
- Now that Aetna and Humana have announced a deal, the pressure is on for Cigna and Anthem to move forward with their own consolidation deal, experts say.
- Insiders suspect the two will be the next to merge given that both companies were said to have been interested in Humana as well, which may have been a factor in their inability to reach a mutually agreeable deal with each other last month.
- Now that their options have been reduced, the way is paved for Cigna and Anthem, Ana Gupte, an analyst at Leerink Partners, told Bloomberg. "Cigna has fewer choices at this point," Gupte said.
Dive Insight:
Aetna's $37-billion deal with Humana is likely to be one of numerous mergers among the top health insurance providers, and indeed may serve as a factor in forcing the others like Cigna and Anthem to follow through with deals of their own in order to compete.
Cigna had rebuffed offers from Anthem in recent weeks for up to $184 a share due to concerns regarding governance and management. With Humana out of the picture, the two could likely reach an agreement for about $190 to $195 a share, Gupte told Bloomberg Business.
If they do reach a deal, Cigna and Anthem will create the largest health insurance company in the U.S. with approximately 53 million members, Bloomberg reports.