Aetna Inc. Acquires Humana Through $37B Deal; Other Health Insurance Companies May Soon Follow

Aetna Inc., an insurance company based in Hartford, CT, recently closed the deal with Humana. The deal amounting to $37 billion of cash and stocks is going to make Aetna a major player in the health insurance agency.

Bloomberg reported that after the implementation of Obamacare in 2010, health plan providers are looking for ways to attract new clients. More mergers are being anticipated as the pressure to become one of top health insurance company mounts.

More health insurance companies see merging as the best option to maintain customers and to compete with Obamacare. Merging allows companies to offer diverse products that they can offer to a larger group of consumers. By combining administrative and other office functions, both companies can save money in the long run.

With the health insurance companies merging, consumers are asking how they can benefit. It remains to be seen what changes these companies are going to make to spice up their products.

The deal between Aetna and Humana made them the second largest health insurance provider in the country but many believed that this would not be for long as more and more companies will merge soon.

The New York Times reported that Aetna and Humana's combined revenues is around $115 billion this year alone.  

In other companies such as Cigna, partnerships are being done. Ana Gupte, a representative from Leerink Partners, said that the deal "paves the way for Cigna and Anthem." Gupte also added, "Cigna has a fewer choices at this point."

Anthem publicly made an offer to Cigna for $47 billion. Rep-Am. Com reported that Cigna initially rejected the offer but it was reported that the two health insurance providers are still talking.

Smaller companies are also doing their best to catch up with the major companies. Centene closed the deal with Health Net Inc. The deal between the two companies cost around $6.3 billion. 

Real Time Analytics