Humana in Talks for Takeover by Aetna/Cigna

[Yagents]

The stock is up 16% today, consolidation is the first step to reduced choice for consumers and agents. Not good news for ACA, since the other two firms don't play in as many states as Humana.

Humana received takeover interest from possible buyers: DJ, citing sources


Shares of health insurer Humana spiked on Friday amid reports the company had received takeover interest from potential buyers.

Potential bidders for Humana include Aetna and Cigna, Dow Jones reported, citing sources. Humana had a market value of about $27 billion on Friday.

Humana shares were up about 15 percent Friday afternoon after a brief trading halt around 1 p.m. ET.

Humana is working with Goldman Sachs on a potential bid, sources told the wire service.

 

[somarco]

If this goes through in time I would not expect to see any of the 3 carriers offering Obamacare next year. As has been speculated before, this is about expanding the Medicare market, not U65 health insurance.

 

[kgmom219]

If this goes through in time I would not expect to see any of the 3 carriers offering Obamacare next year. As has been speculated before, this is about expanding the Medicare market, not U65 health insurance.

Next year is too soon. 2017...maybe.

Remember when UHC was buying Humana in 98 (99?) that took forever, then died. If someone buys them, it will take more than 6 months.

 

[FLM2]

This is a much larger takeover than Coventry by Aetna so there will be many more regulatory hurdles to clear, it will easily take 1 year to complete and each of these companies has already filed their 2016 ACA rates so nothing will change for 2016.

The last thing the government is going to allow is two large health insurers to merge and walk away from ACA plans, that would throw up all kinds of red flags in terms of allowing any merger. What is more likely is that the combined company would commit to remaining in the ACA pool longer in return for preferential treatment regarding the merger, at least IMO.

 

[somarco]

Even without a buyout, I will be surprised if Cigna shows up next year and Humana has already indicated 2016 will probably be their last year.

Aetna is a bad joke.

 

[FLM2]

Even without a buyout, I will be surprised if Cigna shows up next year and Humana has already indicated 2016 will probably be their last year.

Aetna is a bad joke.

Regardless of the future each of these companies has filed 2016 rates in Florida, they aren't going out next year...

 

[kgmom219]

Lets add Anthem to the mix...

http://www.bidnessetc.com/43268-anthem-inc-cfo-company-may-seek-strategic-acquisition-target/

http://www.forbes.com/sites/theapot...ds-for-health-insurers-as-obamacare-stumbles/

 

[somarco]

Mr. DeVeydt further singled out three of the largest healthcare arenas in the US as Anthem's target for Medicaid business expansion.

Saw something in passing a few days ago regarding carrier interest in Medicaid even though it is low margin (1 - 2%) money.

Anthem could end up owning the entire market. U65, Medicare, Medicaid and in all of them acting as a TPA.

 

[jbage007]

If this goes through in time I would not expect to see any of the 3 carriers offering Obamacare next year. As has been speculated before, this is about expanding the Medicare market, not U65 health insurance.

How is this about expanding Medicare? Humana is a dominant #2, nipping heels with UHC for #1 in the MAPD market.

Your statement is illogical.

 

[AllenChicago]

Lets add Anthem to the mix...

Anthem Inc CFO: Company May Seek Strategic Acquisition Target

Headwinds For Health Insurers As Obamacare Stumbles - Forbes

Is Anthem, Aetna, & UHC assuming that Medicaid Expansion will continue to grow in size and revenue potential, despite what happens to the ObamaCare private health insurance market? Sounds like it to me. Big gamble.