Aetna Looks Like A Continuing Winner Among Insurance Majors
Thu, Jul. 21, 10:38 AM
- It's official. The U.S. Department of Justice (DOJ) has filed an antitrust suit in U.S. District Court in Washington, DC attempting to block the Anthem (ANTM +1.8%) and Cigna (CI +0.8%) merger and the Aetna (AET +0.9%) and Humana (HUM -0.4%) merger. In the complaint, the DOJ said the deals would be anti-competitive and would not be in the best interests of consumers.
- Unsurprisingly, the four companies take the opposite view.
Thu, Jul. 21, 5:27 AM
- With a decision on their merger expected within days, Aetna (NYSE:AET) and Humana (NYSE:HUM) remain in discussions with the DOJ, trying to convince federal regulators that their $37B deal will be good for seniors in the Medicare Advantage market.
- The insurers have pitched divestitures, with contracts ready to be signed for assets in markets where their coverage overlaps, but so far, the DOJ has not been convinced by the offers.
Tue, Jul. 19, 10:37 AM
- According to Bloomberg, the U.S. is preparing litigation to block the Anthem (ANTM -2.2%)/Cigna (CI -2%) and Aetna (AET -3.5%)/Humana (HUM -4.2%) mergers over antitrust concerns.
- Previously: Humana, Aetna slide on chatter over Justice Dept. meeting (July 7)
- Previously: Anthem-Cigna deal in jeopardy? (June 30)
- Update: The Department of Justice filed an antitrust lawsuit on July 21 opposing both mergers.
Sun, Jul. 10, 9:47 AM
- WellCare Health Plans (NYSE:WCG) and Centene (NYSE:CNC) have made competing offers for the Medicare Advantage insurance policies - covering about 350K people - that Aetna (NYSE:AET) plans to shed in order to acquire Humana (NYSE:HUM).
- Aetna presented the divestiture plan on Friday, when meeting with DOJ officials in a bid to address their antitrust concerns.
Fri, Jul. 1, 3:38 PM
- Aetna (AET -1.6%) is preparing to sell assets worth several billion dollars as it seeks to ease regulatory concerns over its proposed $37B takeover of Humana (HUM -2.3%), Bloomberg reports.
- The process is advanced and assets could be marketed to potential buyers within weeks, although any asset sale would be conditional on the completion of the merger, according to the report.
- The takeover has a higher probability of winning approval than reflected in market trading, says analyst Ira Gorsky, since the combination is easier to fix than the Anthem-Cigna deal because it is primarily about Medicare Advantage, which is based on distinct, local markets.
Thu, Jun. 23, 3:57 PM
- California's insurance commissioner urges national antitrust regulators to block Aetna's (AET +0.7%) proposed $34B takeover of Humana (HUM -0.2%), saying a merger would reduce competition in already heavily concentrated commercial health insurance markets in California and across the U.S.
- The commissioner also cites the negative impact on millions of seniors nationally who rely on Medicare Advantage, saying an Aetna-Humana combination would have 26% of all Advantage enrollees in the U.S., more than any other insurer.
- The statement comes just days after California's Department of Managed Health Care - the only regulatory agency in the state with official oversight of the deal - said it had approved the deal with conditions, including that AET hold down premium increases and invest $50M in communities.
Tue, Feb. 16, 4:42 AM
- Aetna (NYSE:AET) has received authorization from Florida's Office of Insurance Regulation for its $37B acquisition of Humana (NYSE:HUM), securing 10 of the 20 state approvals required for the largest deal ever in the U.S. insurance industry.
- The announced mergers of Aetna and Humana, as well as Anthem's bid for Cigna, have come under increased scrutiny as the transactions would reduce the number of nationwide health insurers from five to three.
Wed, Jan. 13, 3:23 AM
- Although still under review by the Justice Department, Aetna (NYSE:AET) Chief Executive Mark Bertolini expects the company's $37B acquisition of rival Humana (NYSE:HUM) to close this year.
- "So far, we have nothing to believe it will be any slower than that, or any faster," Bertolini said in an interview at the JP Morgan Healthcare conference.
- Anthem (NYSE:ANTM) CEO Joseph Swedish also anticipates the firm's $47B merger with Cigna (NYSE:CI) to close in 2016 - moves that will further consolidate the U.S. health insurance industry.
Oct. 19, 2015, 4:52 PM
Oct. 19, 2015, 3:05 AM
- Shareholders will get their say this week on two proposed health insurer mergers: Aetna's (NYSE:AET) $37B offer for Humana (NYSE:HUM), and Centene's (NYSE:CNC) $6.3B bid for Health Net (NYSE:HNT).
- Although consumer advocates have raised concerns about whether the combination will lead to less competition and higher prices, proxy advisors ISS and Glass Lewis have given both deals a thumbs-up.
- Aetna and Humana investors are scheduled to vote this afternoon and Centene and Health Net shareholders will cast their ballots on Friday.
Sep. 2, 2015, 1:29 PM
- Forbes Contributor Bruce Japsen reports that the American Hospital Association (AHA) is urging the U.S. Justice Department to closely scrutinize Aetna's (AET +1.1%) proposed $37B takeout of Humana (HUM +0.4%). The hospital lobby says the deal would give Aetna too much power to raise prices of Medicare Advantage plans, the privately run portion of the Medicare program that has seen spectacular growth over the past few years.
- Humana is the second largest insurer of Medicare Advantage while Aetna is the fourth largest. Almost one third of Medicare beneficiaries (~17M Americans) participate in Medicare Advantage.
- AHA SVP and General Counsel Melinda Hatton says, "The deal will not just eliminate current competition between Humana and Aetna, it will eliminate future competition between them. It may create monopsony and enable the merged firm to exploit small, relatively powerless providers. Second, the merger may create downstream market power which could offset the desirable effects of countervailing power and premiums to consumers. Finally, the merger might create countervailing power but the merged firm might exercise it in anti-competitive ways, harming consumers or small providers."
- It's doubtful, though, that the AHA's posturing will scupper the deal.
Jul. 24, 2015, 6:15 AM
- Anthem (NYSE:ANTM) has agreed to buy Cigna (NYSE:CI) in a deal valued at $54.2B, wrapping up a year of negotiations and creating the largest health insurer in the U.S.
- Cigna shareholders will get $103.40 per share in cash and 0.5152 Anthem shares.
- The deal comes three weeks after Aetna (NYSE:AET) struck a deal to buy Humana (NYSE:HUM) for $37B and is part of an industry-wide consolidation following the roll-out of Obamacare.
Jul. 8, 2015, 6:19 AM| Jul. 8, 2015, 6:19 AM
Jul. 6, 2015, 8:07 AM
- In light of its merger with Aetna (NYSE:AET) Humana (NYSE:HUM) updates its Q2 and full-year 2015 guidance. For Q2, it expects non-GAAP EPS of $1.60 - 1.65 compared to its previous expectation of GAAP EPS of $2.78 - 2.83. The reduction is due to the elimination of its anticipated pretax gain from the sale of its Concentra business.
- For 2015, non-GAAP EPS is now projected to be $7.75 versus the previous range of $8.50 - 9.00.
- It target for 2016 Medicare pre-tax margin of 4.5 - 5% remains unchanged.
- The companies will host a conference call this morning at 8:30 am ET to discuss the merger.
Jul. 3, 2015, 2:51 AM
- After weeks of frenzied health insurer merger talks, Aetna (NYSE:AET) says it will buy Humana (NYSE:HUM) for about $37B, or about $230 per share.
- The deal will see Humana shareholders receive $125 in cash and 0.8375 Aetna shares for each share held, representing a premium of 23% from July 2's close.
- Following the merger, Aetna shareholders will own about 74% of the combined company.
- Previously: WSJ: Aetna very close to Humana buyout deal (Jul. 02 2015)
Jul. 2, 2015, 8:49 PM
- Aetna (AET -2.7%) is again close to a deal to buy Humana (HUM -2.9%) and it could be sealed as soon as tonight and announced this week, The Wall Street Journal reports.
- The deal -- another huge one in a big year for M&A -- would place Aetna near the top of Medicare business amid continuing industry consolidation.
- Humana shares have declined over the past two weeks, but are still up 5% from the end of May when it discussed selling itself. Aetna shares are up 8.9% over that time period.
Aetna, Inc. operates as a health care benefits providing company. It offers traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, medical management capabilities,... More
Industry: Health Care Plans
Country: United States
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