Cigna, Humana in talks for merger this year—WSJ

Cigna, Humana in talks for merger this year—WSJ

Modern Healthcare

November 29, 2023

Cigna and Humana may ink a merger deal before the end of the year, the Wall Street Journal reported Wednesday. The two companies, which offer health insurance, pharmacy benefit management and health services, are weighing a stock-and-cash transaction that would create the third-largest player in the sector by market capitalization, behind UnitedHealth Group and Elevance Health. Cigna and Humana did not immediately respond to requests for comment. The Wall Street Journal cited unnamed sources familiar with the matter, who emphasized the talks may not come to fruition. ... A plan to combine these two companies would likely provoke antitrust concerns. Cigna jettisoning its Medicare Advantage business before joining forces with the second-biggest Medicare Advantage carrier by membership could partially address those, and Humana already announced it would exit the commercial health insurance market, which is one of Cigna’s strengths. But Cigna and Humana overlap in other areas, especially pharmacy benefit management.

[Editor’s Note: To read the Wall Street Journal article, “Cigna, Humana in Talks for Blockbuster Merger,” click here.]