Integrity Financial Insurance Agency
|Posted on July 30, 2015 at 3:05 PM|
Anthem is buying Cigna in a deal valued at $54.2 billion that will create the nation's largest health insurer by enrollment, covering about 53 million members. Anthem, based in Indianapolis, has pursued Cigna aggressively for months. The deal comes just three weeks after the insurer Aetna bid $35 billion for Humana in a buyout frenzy that will transform five massive U.S. health companies into three even larger ones.
Anthem said it expects the deal to close in the second half of 2016, indicating a long regulatory road ahead. Anthem said it was confident it would get all necessary regulatory and other approvals. The company has said the acquisition will help it reduce costs and allow it to negotiate lower prices with doctors and hospitals. However, antitrust authorities are expected to aggressively scrutinize how the combinations will affect competition for Medicare, individual and commercial insurance.
Anthem and Cigna are two of just four major insurers that administer self-insured plans for major companies. The other two are UnitedHealth Group, Inc. and Aetna. UnitedHealth is currently the biggest U.S. health insurer by membership, while Anthem and Cigna rank No. 2 and No. 4. The combined company would have about 53 million members. UnitedHealth had 45.86 million members as of June 30, 2015.
There are a lot of changes taking place in regards to health insurance mainly due to the Affordable Healthcare Act. At Integrity Financial Insurance we want our clients to be informed of what is taking place regarding your health insurance. If you have any questions please don’t hesitate to call or contact us.