Consolidation in US health insurance industry
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[November 30, 2023]
By Deena Beasley
(Reuters) - Health insurer Cigna is in merger talks with Humana, 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 acquired pharmacy benefit manager Catamaran for $12.8
billion, merging it into its existing OptumRx drug benefit unit.
2015: Pharmacy chain CVS Health acquired Omnicare, a provider of
pharmacy services to long-term care facilities for more than $12
billion.
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2015: CVS Health acquired Target's 1,600-plus pharmacies and retail
medical clinics inside Target stores for nearly $2 billion.
2017: CVS Health announced plans to acquire health insurer Aetna for $69
billion in the largest-ever healthcare merger.
The companies said they would save administrative and patient care
costs, in part by steering Aetna customers to walk-in clinics in CVS
stores for less expensive medical services.
October 2017: Anthem announced that it would not renew its pharmacy
benefit management relationship with Express Scripts and subsequently
entered into a new contract with CVS Health.
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![](../images/113023PIX/health23.jpg)
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
![](http://archives.lincolndailynews.com/2023/Nov/30/images/ads/current/bennet_lda_010722.png) March 2018: Health insurer Cigna
announced plans to acquire Express Scripts for $52 billion.
November 2018: CVS Health completes its $69 billion acquisition of
Aetna.
June 2019: UnitedHealth acquires the primary and urgent care
services of DaVita for $4.3 billion.
March 2022: UnitedHealth announced it would acquire LHC Group for
$5.4 billion. The deal closed in February 2023.
September 2022: CVS Health announced that it reached an agreement to
buy at-home health company Signify Health for roughly $8 billion.
The deal closed in March 2023.
February 2023: CVS Health entered into a definitive agreement to
acquire primary care center operator Oak Street Health for around
$10 billion. The deal closed in May 2023.
(Reporting by Deena Beasley; Additional reporting by Diane Bartz in
Washington; Editing by Christopher Cushing)
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