Aetna to buy Humana in $37B deal
Aetna will spend $37 billion to buy rival Humana and become the latest health insurer bulking up on government business as the industry adjusts to the federal healthcare overhaul.
The proposed cash-and-stock deal, announced early Friday, could make Aetna the nation’s second-largest insurer and a sizeable player in the rapidly growing Medicare Advantage business, which offers privately run versions of the federally funded healthcare program for the elderly and some people with disabilities.
Humana, based in Louisville, Ky., has nearly 3.2 million people enrolled in Medicare Advantage plans, a total that falls just short of market leader UnitedHealth Group.
The combination also would bolster Aetna’s presence in the state- and federally funded Medicaid program and Tricare coverage for military personnel and their families.
The deal value totals about $37 billion counting debt.
Read more: Modern Healthcare