Aetna Agrees to Acquire Humana for $37 Billion in Cash and Stock.
The health insurer Aetna said on Friday that it had agreed to acquire its smaller rival Humana for $37 billion in cash and stock, signaling the start of what may become a flurry of consolidation in the sector.
The deal would bring together two of the United States’ biggest health insurers. The combined company would have estimated operating revenue of $115 billion this year and more than 33 million consumers.
The merger could be the first in a series of deals as the health insurance industry in the United States grapples with rising medical costs and seeks growth to create better pricing power in negotiations with health care providers and pharmaceutical companies.
That push for mergers received a jump-start last week after the Supreme Court upheld a central part of the Obama administration’s health care overhaul, which has delivered a lift to the insurance industry. Insurers also are feeling pressure as consumers, who are being asked to shoulder more of the burden of health care costs, are becoming more price conscious. Read More at The New York Times