It has been reported that three major health insurers were pursued a deal that was signed this week between Aetna Inc. and Humana Inc. UnitedHealth Group Inc., Anthem Inc. and Cigna Corp were lurking around the discussions regarding the deal.
According to reports, both Aetna and Cigna were following Humana. Sources knowing about the talks revealed that. In the meantime, Cigna was saying no to advances from Anthem and its $47.5 billion bid for Cigna last month was revealed after it failed to reach a deal when it approached the company privately.
The Health insurer, Humana Inc. considers selling itself reflecting an attempt to cope with the pressure of cost cuts that the Affordable Care Act is generating.
The sale of Humana could trigger further mergers in the health care industry as the big health insurers will find it lucrative to collaborate in order to gain a competitive edge in the industry.
The Louisville based insurer, Humana, administers the private version of the federal Medicare program. The company surely has bright prospects as it commands a powerful Medicare franchise which is growing rapidly as an increasing number of people are opting for Medicare Advantage.