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Factbox-Consolidation in US health insurance industry By Reuters

by News
November 30, 2023
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© Reuters. FILE PHOTO: Signage for Humana Inc. is pictured at a health facility in Queens, New York City, U.S., November 30, 2021. REUTERS/Andrew Kelly/File Photo

By Deena Beasley

(Reuters) – Health insurer Cigna (NYSE:) is in merger talks with Humana (NYSE:), a source familiar with the matter said on Wednesday, potentially marking the latest in a long string of deals aimed at consolidation of the industry.

The U.S. Department of Justice, citing the prospect of higher prices, in 2016 successfully sued to stop two proposed mega mergers: Anthem’s – now Elevance Health – planned $54 billion purchase of Cigna and Aetna’s proposed $34 billion acquisition of Humana.

The companies said those proposed deals were triggered by the Affordable Care Act, which was fully implemented in 2014. Here is what has happened in deals involving health insurers since the law went into effect:

2015: UnitedHealth (NYSE:) acquired pharmacy benefit manager Catamaran for $12.8 billion, merging it into its existing OptumRx drug benefit unit.

2015: Pharmacy chain CVS Health (NYSE:) acquired Omnicare, a provider of pharmacy services to long-term care facilities for more than $12 billion.

2015: CVS…

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