Last month, Cigna turned down an offer of US$184 a share.
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The proposed Anthem-Cigna deal values Cigna shares at about $188.
A spokesman for Bloomfield, Connecticut-based Cigna declined to comment, while a spokeswoman for Indianapolis-based Anthem didn’t respond to a request for comment.
Health insurer Anthem Inc is close to finalizing negotiations to acquire peer Cigna Inc and could announce a roughly $48 billion deal as early as this week, according to a person familiar with the matter.
Cigna appeals to Anthem because of its strong national accounts business, which is insurance offered to large employers; its stock of coverage from mid-sized businesses; and its specialty programs such as dental, vision and behavioral health.
Health insurance giant Anthem ( ANTM ) is gearing up for an acquisition of competitor Cigna ( CI ), reports say. An announcement could come later this week. UnitedHealthcare, the current largest insurer, has about 45 million members, while the recently merged company between Aetna and Humana has about 33 million members (Johnson, “Wonkblog”, Washington Post, 7/22).
With the merger, Anthem could face issues because of its status as a Blue Cross Blue Shield Association licensee, the Journal reports. The larger companies will also have increased clout in negotiating rates with hospitals and doctors groups.
Joseph Swedish, Anthem’s chief executive officer, would run the combined company, one of the people said.
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It remains unclear how both the Aetna and Cigna deals would affect employment in the state. In addition, bigger companies can have more influence negotiating with providers (“Wonkblog”, Washington Post, 7/22). Analysts have said that antitrust regulators will probably allow only some of the potential mergers before deciding that too much power is being concentrated in too few hands. Another study noted that increasing the number of insurers on ACA exchanges helped lower premiums (“Wonkblog”, Washington Post, 7/22).
