Industry analysts are speculating that Bloomfield, Conn.-based Cigna and Louisville, Ky.-based Humana could merge after two judges recently blocked their previous mergers, Reuters reports.
Here's what you should know.
1. Cigna could possibly acquire Humana because of its smaller Medicare Advantage business. If combined with Cigna, the companies' joint assets wouldn't be as monopolistic as the failed mega-mergers, according to analysts.
2. Randal Schultz, JD, an attorney at Chicago-based Lathrop & Gage LLP, said to Reuters, "They may have blocked the merger (with Aetna), but that's not the end of the song."
3. Cigna and Humana did not respond to Reuters request for comment. While Hartford, Ct.-based Aetna declined to comment.
4. The insurance sector remains ripe for consolidation. If President Donald Trump repeals the ACA, consolidation would become an attractive option for insurers because of the valuable Medicare Advantage assets.
5. Analysts speculate if Cigna strikes a deal with Humana it would help the payer diversify its portfolio from its heavy business focus.