Channel Sponsor - Coding/Billing/Collections

Sponsored by National Medical Billing Services | info@nationalASCbilling.com | (636) 273-6711

Anthem exec. indicates plans to buy Aetna assets; is the payer bowing out of its Cigna deal? 5 key thoughts

Indianapolis-based Anthem's Chief Financial Officer John Gallina told 20 analysts the payer is currently working on "remediation plans," which consist of purchasing assets from Aetna, according to the New York Post.

Here are five key thoughts:

1. Sources familiar with the matter claim Anthem would not consider buying Aetna assets if Anthem realistically plans to purchase Cigna. Aetna is in the works of a Humana merger, a major rival of Cigna.

2. Wall Street analysts have said the Department of Justice will likely work to block the Anthem-Cigna merger, but Anthem can still fight the move as its agreement with Cigna runs through January 2017.

3. However, if Anthem opts to fight the Department of Justice, the payer would miss a viable opportunity to purchase Aetna's assets.

4. If Anthem breaks the deal, it would face a $1.85 billion break-up fee.

5. An Anthem spokesperson said, "Anthem and Cigna are not in discussions regarding a termination of the merger agreement or the payment of a breakup fee." However, the spokesperson did not comment on Mr. Gallina's statement on Anthem's plans to purchase Aetna assets.

More articles on coding & billing:
Colorado voters to decide on universal healthcare in November: 5 things to know
Private healthcare costs spiked 37% during ACA's 1st 4 years: 5 observations
Medicare funds depleting fast; may run out of funds by 2028: 5 things to know

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months